You are considering delivering pizza for the next three years ...continued below?

Question

a. You are considering delivering pizza for the next three years while you are attending college. You estimate that you can earn $1,500 per year doing so. However, you need a dedicated car shaped like a pepperoni to attract your customers. Such a delivery car costs $5,000. You expect pepperoni-shaped cars to be valuable collectors’ items, having a market value of $1,960 at the end of three years. What is the Net Present Worth (same as Net Present Value) of this business? Use an interest rate of 6% per year.

b. Given the result you calculated for the NPW of your pizza delivery business in Question 2, would the business be economically wise for you? Explain briefly why, or why not.

Answer 1

You estimate that you can earn $1,500 per year.

it depends on the meaning of "earn", what about the expenses of gas and maintenance of the car?

would the business be economically wise for you?

1500/year???? LOL