Using present worth analysis

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You want to start a restaurant business. Your initial investment is $10,000, borrowed at 4% annual rate. Your cash flow for (at the end of) years 1, 2, 3, 4 and 5 are respectively $2400, $3100, $2100, $4300 and $5000. Using Present worth analysis, determine when breakeven occurs. Draw the cash flow diagram.

Reference no: EM131248143

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Using present worth analysis : You want to start a restaurant business. Your initial investment is $10,000, borrowed at 4% annual rate. Your cash flow for (at the end of) years 1, 2, 3, 4 and 5 are respectively $2400, $3100, $2100, $4300 and $5000. Using Present worth analysis..

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