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Tawanna is considering starting a small business. She plans to purchase equipment costing $149,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $32,400 per year. A market research specialist estimates that Tawanna's annual sales from the business will amount to $96,000. 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?

1. 37,600 2. 58,400 3. 96.000 4. none are correct

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91612563

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