What is the npv of investment

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SIM An entrepreneur who would like to open a restaurant has approached you. By coincidence, it is the same entrepreneur whose decisions we have been studying in this chapter. The entrepreneur is offering 1 percent of the equity of the venture for each $10,000 you invest and will contribute $400,000 to the project. Suppose you agree with the entrepreneur's assumptions, as set out in Table 5.1 for the large restaurant and elsewhere in the chapter for the small restaurant, including the PV assumptions. Use simulation to examine the opportunity from your perspective instead of the entrepreneur's.

a. What is the NPV of your investment in the large restaurant if there are no options and investment is immediate?

b. What is the NPV of your investment in the small restaurant if there are no options and investment is immediate?

Reference no: EM133069298

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