You are asked to determine the OCF for a new t-shirt business at a water park. Y
ID: 2684261 • Letter: Y
Question
You are asked to determine the OCF for a new t-shirt business at a water park. You need to take the NPV analysis to a bank for financing. Which of the following numbers should be included in the NPV analysis: Labor= 1000; utilities= 1000; insurance= 1000; expected interest on loan= 1000; trip to the water park last year wit a boat rental agency(where the idea came from) = 500; building rental= 1000; other operating expenses= 1000 you say _______ because______? A) exclude trip; the money has already been spent on another project b) exclude interest; it is included in the discount rate c) all of the aboveExplanation / Answer
c) all of the above
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