Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1-brew inc. is thinking of starting a new line of

1-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will...

90.2K

Verified Solution

Question

Finance

image

1-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will deliver coffee from popular brands to customers' doors and customize coffee flavor right there. The company estimates that it will cost $499,000 to immediately invest into new delivery vehicles and coffee brewing machines. The estimated operating cash flow will equal $135,000 per year. At the end of Year 3 this pilot coffee delivery project will be over, at which time all used vehicles and equipment will be sold at the after-tax salvage value of $271,000. The company also plans to immediately set aside $31,000 in cash which will be increased by $10,000 each year and recovered at the end of the project. Calculate the Net Present Value of the project if the appropriate discount rate is 1395. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to two decimal places: for example, 10,000.23. Do NOT use "$" in your answer. If your answer is negative, don't forget the MINUS sign! -4763.27

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

In an epidemiologic context, define and explain the term confounding. Include in your description an example...

Psychology
1.2K views

How to get kids to do chores: The role of conditioning in parenting. Explain how each of...

Biology
1.2K views

Which of the following is NOT a subphylum of the Arthropoda Chelicerata Uniramia Gastropoda

Basic Math
1.2K views

If Maria designs a function to predict the amount of revenue, r, generated as a...

Calculus
1.2K views

Consider the integral L 2 dz a Find the Riemann sum for this integral using...

Calculus
1.2K views

1 Suppose that the height of a skydiver t seconds after jumping from an airplane...

Algebra
1.2K views

y x 3 X 1 3 5 y Write as a relation 15 Range 17...

Accounting
1.2K views

At the end of 2019, Culver Company has $182,000 of cumulative temporary differences that will...

Accounting
1.2K views

Rs. 75 lakhs 1.25 Net worth Net worth = Rs. 60 lakhs 7 Calculation of...

Accounting
1.2K views

Problem 5-6 Nash Inc. had the following balance sheet at December 31, 2016 NASH INC....

Accounting
1.2K views

If the earnings per share is 30p, the nominal value of the share is 1...

Accounting
1.2K views

FIFO, weighted-average, and LIFO methods are often used instead of specific identification for inventory valuation...