Explain the cost of capital


A video rental stores will cost $650000 to open. assuming annual sales of 1 million, variable costs of 35%, fixed costs of 300000, depreciation of 100000, and a tax rate of 35%, calculate the NPV of the project over 10 year horizon (no inflation or salvage value)with a 12% cost of capital?

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Finance Basics: Explain the cost of capital
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