Suppose you and your friend have teamed up to sell lemonade on Friday afternoons outside the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose you and your friend have teamed up to sell lemonade on Friday afternoons outside the Alger Hall building in RIC. The lemonade will cost you $3.00 each and your team has planned to sell them for $5.00 each. The lemonade cart will cost you $10,000 and you expect to sell 300 those every Friday afternoon for the next one year. Assuming that you buy the $10,000 cart today and that you operate the cart for 1 year (52 weeks), what is the NPV of your investment at a discount rate of 4% APR? Suppose you and your friend have teamed up to sell lemonade on Friday afternoons outside the Alger Hall building in RIC. The lemonade will cost you $3.00 each and your team has planned to sell them for $5.00 each. The lemonade cart will cost you $10,000 and you expect to sell 300 those every Friday afternoon for the next one year. Assuming that you buy the $10,000 cart today and that you operate the cart for 1 year (52 weeks), what is the NPV of your investment at a discount rate of 4% APR?
Expert Answer:
Answer rating: 100% (QA)
Calculation of NPV To calculate the NPV of the lemonade cart investment ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these finance questions
-
What about all the hybrid systems of cabling and wireless interconnectivity? There are places where cabling is just not practical or where wireless interference is just unacceptable causing...
-
Suppose you and your friend Bob are in the business of producing baseball cards. A: Both of you face the same production technology which has the property that the marginal product of labor initially...
-
Suppose you and your friend Amy work together to develop a unique magic trick that either of you could perform alone. It turns out to be a tremendously popular trick and both of you make it big as...
-
Logical fallacies are frequently used in arguments and have an intuitive appeal that makes them effective for politicians to use. Using your understanding of fallacies, you will listen to and take...
-
Explain your thoughts behind your straw poll vote decision. Share/describe the foundation for your vote with your fellow jurors. Your posts will be visible to all members of your jury Please be...
-
According to an old myth, Native Americans sold the island of Manhattan about 400 years ago for $24. If they had invested this amount at an interest rate of 7 percent per year, how much,...
-
The flowrate in the clay-lined channel \((n=0.025)\) shown in Fig. P10.54 is to be \(300 \mathrm{ft}^{3} / \mathrm{s}\). To prevent erosion of the sides, the velocity must not exceed \(5 \mathrm{ft}...
-
Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Roller's buildings and equipment was $20,000 more than the book value....
-
You need to build a spring scale for weighing (actually building it is not necessary, this is theoretical exercise.) It will be helpful to sketch out a design. You need a scale capable of weighing...
-
Journalize the following transactions into the general journal. The chart of accounts, the trial balance from January, 1 2020, schedule of accounts payable, and the schedule of accounts receivable is...
-
What is the approximate total intensity of light in this band at sea level? (b) (5 points) For this same band, how much power is lost in the atmosphere? (c) (5 points) I have a 10 meter by 15 meter...
-
A proton is moving in the uniform electric field of part A ( An electron is moving east in a uniform electric field of 1 . 4 5 N / C directed to the west ) . At point A , the velocity of the proton...
-
Johnny is fighting with his sister Renee. Their fighting has started hurting others in their family, so their mom encouraged them to go sit down with a third party to help them work through their...
-
(a) A capacitor, C Farads, is being charged from a DC power supply voltage (o) via a resistor of resistance, R Ohms. The voltage across the capacitor is given by the formula Vc =10 (1 =e=) Where t is...
-
A player hits a tennis ball into the air with an initial velocity of 3 0 m / s at 3 5 \ deg from the vertical. How high does the ball go and how fast is the ball moving at the highest point in its...
-
Use the following transactions to complete the second month of operations for Billy Bob's Daycare. Feb. Billy Bob began selling T-shirts to the kids and parents. Billy pays cash for 40 T- shirts at...
-
The disadvantages of a centralized organizational structure include putting too much decision making authority in the hands of lower-level company personnel. making it hard to fix accountability when...
-
A. Select a recent issue (paper or online) of Report on Business Magazine, Canadian Business Magazine (online only), Bloomberg Businessweek, Fast Company, The Economist, or another business magazine....
-
AI Thomas has recently been approached by his brother-in-law, Robert Watson, with a proposal to buy a 20 percent interest in Watson Leisure Time Sporting Goods. The firm manufactures golf clubs,...
-
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $100,000 if credit is extended to these new customers. Of the new...
-
The Vinny Cartier Company issued bonds in 2005 at $1,000 per bond. The bonds had a 25-year life when issued, with semiannual payments at the then annual rate of 12 percent. This return was in line...
-
What are the different methods of conducting marketing research?
-
What is the main difference between a full-service and a limited-service supplier?
-
What are some of the issues that should be considered when conducting marketing research?
Study smarter with the SolutionInn App