Let's say we are planning on adding a very large modern sign to attract customers to our marijuana and tattoo shop that we run just north of Denver.We've completed a ton of market analyses and we are fairly confident that the sign will increase sales by $50,000 per year for the first two years, and then we think it will result in an increase of $35,000 per year for the next four years.The margins we earn on our sales of marijuana is 70% and the margins we earn on our tattoos is 40%.We expect that the incremental sales resulting from the sign will be split 50-50 between marijuana products and tattoo services.

The sign will cost us $110, 000 and the company has no debt.The owners of the company expect to earn 15% on the funds they invest in the company.After six years, the sign will likely be taken down and sold for scrap to yield $5,000.

Calculate Net present value. Ignore taxes.