You have an opportunity to purchase the Kuppajo Cafe, a busy shop near your office. The owner is asking $49 000. 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 four years and sell it for $30 000. What is the maximum amount you would be willing to pay for the business if you wished to earn at least a 10% return on your investment?

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The Answer of You have an opportunity to purchase the Kuppajo Cafe, a busy shop near your office. The owner is asking $49 000. 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 four years and sell it for $30 000. What is the maximum amount you would be willing to pay for the business if you wished to earn at least a 10% return on your investment?

You Have an Opportunity to Purchase the Kuppajo Cafe, a Busy