you see all the craziness of the stock market and wonder if there is a way for you profit. You consider starting a new app, but can only start one because of limited servers at AWS (Amazon Web Services). For the first idea, you'll start a new brokerage that trades against whatever Robinhood users are buying. You'll call it "Sheriffs of Nottingham." To start the brokerage today, you'll need to invest $5 million today. You then believe you can make $1.5 million per year for the next 5 years start a year from today at which point Robinhood will shutdown and no Sheriffs are needed. Alternatively, you will start a website to compete against Reddit for people who want to trade stocks. Since they blindly follow the advice of the moderators, you'll call it "Suckered." To start "Suckered," it will cost you $3 million today. You'll then make $500,000 per year for the next 20 years starting a year from today. If your discount rate is 6%, which project should you start?

 

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Heres how to compare the two projects Sheriffs of Nottingham and Suckered and determine which one has a higher Net Present Value NPV based on the give... View the full answer