What will be the amount of annual net cash flow generated

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Reference no: EM131989156

Problem

Tawanna is considering starting a small business. She plans to purchase equipment costing $152,000. Rent on the building used by the business will be $27,500 per year while other operating costs will total $34,200 per year. A market research specialist estimates that Tawanna's annual sales from the business will amount to $100,500. Tawanna plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?

Reference no: EM131989156

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