Cookie company wants to expand its retail operations

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A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are feasible in various parts of the country. The cash flow at each store is expected to be $150000 in the first year and grow by 10.00% per year over the next 4 years (in years 2, 3, 4 and 5). At that point the project ends. Each store requires an immediate investment of $400000 to set up operations. Assuming a required rate of return 7.00%, what is the NPV of each store?

Reference no: EM131615819

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