You have an opportunity to purchase the waiting line cafe a

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You have an opportunity to purchase the Waiting Line Cafe, a busy shop near your office. The owner is asking $80,000. After satisfying yourself as to the accuracy of the firm's past financial statements, you note that it generated $12,000 per year in net cash flow. You believe you could operate the business for 4 years and sell it for $50,000. What is the maximum amount you would be willing to pay for the business if you wish to earn at least a 10% return on your investment?

Reference no: EM13610679

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