Question: UBER ____ 2. A man is considering purchasing a new car for $49,000 and using it to drive for UBER. He expects to generate annual
UBER
____ 2. A man is considering purchasing a new car for $49,000 and using it to drive for UBER. He expects to generate annual net cash flows over the next five years of $26,000, $30,000, $30,000, $27,000, $19,000. The salvage value of the vehicle at the end of year 5 is $5,000. Calculate the NPV of this mans business, including salvage value, if the opportunity cost is 4.0%.
| a. | $72,040 |
| b. | $73,213 |
| c. | $74,965 |
| d. | $75,390 |
| e. | $76,337 |
____ 3. Refer to the UBER scenario above. What is the IRR?
| a. | 48.7% |
| b. | 49.1% |
| c. | 49.4% |
| d. | 50.0% |
| e. | 51.2% |
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