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Calcualting the net annual cash flows

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You are an entrepreneur and have decided to invest your hard earned cash into a business venture. Based on your estimates the business you have selected will generate annual cash inflows of $60,000 and incur annual cash outflows of $25,000 both of which will start at the end of the first year. If the business costs you $580,000 today what rate of return would you expect if net annual cash flows are expected to grow at rate of 3% per year. Assume that you intend to keep this business in your family forever.

Reference no: EM131898389

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