Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $120,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 25%, what is your NPV? (Round your answer to the nearest cent;
e. g. , $100,000. 01)
a. $89,543. 89
b. $70,233. 60
c. $59,564. 90
d. $68,746. 61
e. None of the above
