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What is the npv of the coffee truck

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Question - Malina is thinking of starting a competing coffee truck outside of PACCAR. The truck will cost $100k, to be paid today. The truck will have cash inflows of $10k for the first 4 years, occurring at the end of the year. The truck will have perpetual cash inflows thereafter, with a cash inflow of $10k in year 5 while each cash flow thereafter will grow at a 2% rate. What is the NPV of the coffee truck if the appropriate discount rate is 8%?

Reference no: EM133172067

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