What is the net present value of project

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For the business alone and no other assets (such as the building and land), the purchase price is $250,000. The net cash flows for the project are $30,000 per year for the next 5 years. The plan is to borrow the money for this investment at 5%.You will need to address the following questions:

-What is the net present value of this project? Use the calculations covered in this week's Video to calculate the net present value.

-Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project?

-How would you evaluate this investment? What would be a good price at which to purchase this business?Prepare the calculations to determine if the laundromat is a good investment. Be sure to address the questions above in the presentation.

Reference no: EM132944772

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