Amount of annual net cash flow generated by the business

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Tawanna is considering starting a small business. She plans to purchase equipment costing $149,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $32,400 per year. A market research specialist estimates that Tawanna's annual sales from the business will amount to $96,000. Tawanna plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?

1. 37,600   2. 58,400   3. 96.000    4. none are correct

Reference no: EM13941692

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