Express the minimum amount of investment you need to operate

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Reference no: EM13879994

A company producing certain products has concluded to have the following estimated data over its 5-year projection plan:


1st year

($ mil)

2nd year

3rd year

4th year

5th year

Total Expenses

0.75

0.65

0.6

0.6

0.65

Cum Expenses






Total Revenues

0

0.75

1.0

1.3

1.2

Cum Revenues






Please plot the above data to represent cumulative costs versus cumulative revenues over the 5-year projections on the following table to extrapolate the breakeven point for this project. Express the minimum amount of investment you need to operate and deliver this project, indicating the best ROI at the end of 5th year, based on:

(a) Investment amount = Breakeven;

(b) Cash investment of 20% down & 80% loan.

Reference no: EM13879994

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