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Question - You currently have $10,000 invested in a saving account earning 10%. You are planning to start a new start-up business 5 years from now (end of year 5). The start-up requires a cash outflows of $120,000 end of year 5 and $25,000 end of year 6. Determine how much would you need to save every year (at end of year) during the coming 5 years- in addition to the cash you have- to be able to achieve that. Assume a rate of return of 10% for all investments.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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