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Peabody automotive is evaluating an expansion project that involves building a new garage on the...

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Finance

Peabody automotive is evaluating an expansion project that involves building a new garage on the other side of town. They anticipate earning $5,000 every year for the next 7 years with the first $5,000 payment received one year after the project starts. After 7 years they will sell the facility for $100,000. Peabody has a cost of capital of 19%. Find the maximum startup cost they could pay at initiation to make the project profitable (NPV>=0).

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ENTER YOUR ANSWER AS A POSITIVE NUMBER

INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry computation to at least 4 decimals and round your final answer to 2 decimal places.

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