What is the payback for buying this franchise

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Reference no: EM131893265

1. It is true that banks usually impose conditions (collateral or cosigners, etc.) while finance companies do not, but this was not part of the budget?

2. A franchisee for a top fast food company had to invest $1,000,000.00 up front to buy into the business. He believes that if he runs the business effectively, he can generate a cash flow of $100,000.00 per year. What is the payback for buying this franchise?

3. Big Brothers Inc borrows $66,737 from the bank at 18.15 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installment s at the end of each year over the next 8 years. How much will each annual payment be?

Reference no: EM131893265

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