Answer Happy

Marc's Ferrari Driving Company (MFDC) is considering an expansion into an entirely new line of business. The first businesses under consideration, EZtest, builds robots which assists students taking tests and exams. The second business, reMINDer, has tools to help prevent students from forgetting assignment due dates (and to help working professionals remember their obligations). You've estimated the cash flows for the two businesses as follows: EZtest reMINDer Year 0 -$30,000 $53,000 1 $15,000 $29,000 $25,000 $45,000 $30,000 $61,000 4 $57,000 $97,000 To determine whether these new businesses are financially viable, we'll need to evaluate them at the MFDC cost of capital, which is currently 11.06%. What is the net present value of reMINDer? (answer in dollars, rounded to the nearest penny, for example, if your answer is $123.456 you should enter 123.46) Type your answer... 2 3