1-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will...
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1-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will deliver coffee from popular brands to customers' doors and customize coffee flavor right there. The company estimates that it will cost $499,000 to immediately invest into new delivery vehicles and coffee brewing machines. The estimated operating cash flow will equal $135,000 per year. At the end of Year 3 this pilot coffee delivery project will be over, at which time all used vehicles and equipment will be sold at the after-tax salvage value of $271,000. The company also plans to immediately set aside $31,000 in cash which will be increased by $10,000 each year and recovered at the end of the project. Calculate the Net Present Value of the project if the appropriate discount rate is 1395. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to two decimal places: for example, 10,000.23. Do NOT use "$" in your answer. If your answer is negative, don't forget the MINUS sign! -4763.27
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