Question

Starbucks is looking at increasing their grocery store items with a new investment in chi tea blends. The investment will cost $56,000,000 and they expect first year net earnings to be $9,400,000 and their revenue will increase annually by 15% for years 1-5, then stay constant until year 8. which is the end. What is this worth annually to Starbucks if their MARR is 9%?

Please do on Excel show formulas/calculations

Answer 1