What is your thinking process about this investment

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It turns out Campus Coffee (that little kiosk by Craven) is up for sale. The owner wants $ 1 million – its yearly gross revenues are $500,000 per year and their net is about $250,000. You only have $100,000 and you may have to borrow the rest. A credit union is willing to offer you a loan for $500,000 at 10% p.a., and a short-term moneylender is willing to lend you the rest at 20% p.a. There is also the possibility that you could persuade some friends to join you as shareholders. What is your thinking process about this investment from a FIN 302 and capital budgeting perspective? Explain your thought process over this business idea.

Reference no: EM132048819

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