Question: You are considering a new blockchain-based NFT project at your small chain of laundromats. You estimate that the cost of the project will be $80,000

You are considering a new blockchain-based NFT project at your small chain of laundromats.

You estimate that the cost of the project will be $80,000 in year 1 and $100,000 in year 2.

If the NFTs sell well, it will generate an estimated $30,000 in operating cash flow per year in years 1 through 3, and $50,000 in year 4, at which point the project will be mature and generate $50,000 per year every year thereafter.

At a discount rate of 20%, what is the NPV of the project?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Here are the steps to calculate the NPV of the proposed NFT project Costs Year ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!