Addition to the annual operating cash flow for that year

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Assuming that the average ice cream store has a life of about 10 years, what is the NPV of opening a new store if the required rate of return in this business is 10%? You may assume that the $250,000 in initial inventory will be recovered at the end of the 10th year (in addition to the annual operating cash flow for that year). What is the IRR that one can earn by opening up a new store?

Reference no: EM131078004

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