New venture is launched with an initial investment

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A new venture is launched with an initial investment (cash on hand) of $80,000. It generates sales of $40,000 each month. It has monthly operating costs of $36,000. The firm purchases equipment costing $30,000 each month for the first 4 months. Calculate the return on investment at the end of 12 months. Determine if the cash on hand remains positive at the end of each month. What, if any, investment is required and when?

Reference no: EM131323072

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