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You are considering renovating your small business into an even smaller business. You currently earn...

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You are considering renovating your small business into an even smaller business. You currently earn $50,000 per year from your business. It would cost $100,000 to renovate. You are not sure how successful the new venture will be. You paid $500 for a market report which told you that you have an equal chance of earning $100,000 per year or $40,000 per year, starting in 2 years (meaning at time 2). You plan to operate the business for 10 years, regardless of renovations. You have an interest rate of 2% annually What is the NPV of the project

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