Question

Ms. Brown estimates the following cash flow for the first five years of operations, with cash flow leveling off in year 5. Year Cash flow Year 1 $695,000 Year 2= 876,250 Year 3= 1,057,500 Year 4= 1,238,750 Year 5= 1, 420,000 Calculate the IRR and NPV of this project utliizing a 12% discount rate and a 15% cap rate. Ms. brown was able to secure a loan for $1,540,000, and an equity investor agreed to invest the remaining $660,000 in exchange for 20% ownership in the project? 3) What would the investor's ROI be for this 5-year project? If the restaurant achieved the budgeted operating results for the year? 40 If the investor has a hurdle rate of 15%, does this project meet or exceed the investor's requirements?

Answer 1

Please type your <u>subject</u> in the <b>School Subject</b> box. Any other words, including obscure abbreviations, are likely to delay responses from a teacher who knows that subject well.

Answer 2

Without the correct School Subject the right teacher may never see your post. Is it auditing or what?

Sra