1. I bought my car for $28,000 five years ago, it is now worth $16,000 (net of selling expenses). I want to use my car in a new taxi business that I am starting. What is the correct opportunity cost that should be used in calculating the NPV of my taxi service?;2. If the working capital balance was $140,000 at the end of 2011 and was $100,000 at the end of 2012. What is the incremental investment in working capital for 2012?
Opportunity Cost and Capital Balance
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