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2 Two young entrepreneurs want to invest $2,50,000 in a restaurant 3 Their business plan shows that the restaurant will generate the following cash flows: Nm un 4 5 Year 6 7 00 9 10 11 Cashflow 1 $ 10,000 2 $ 30,000 3 $ 40,000 4 $ 50,000 5 $ 50,000 6 $ 60,000 7 $ 60,000 8 $ 75,000 9 $ 75,000 10 $ 75,000 12 13 14 15 16 17 They want to earn at least 16% return 18 They also would like to have their initial investment recovered within 19 5 year's 20 e 21 22 WN Q1 What is the present value? Q2 What is the net present value? Q3 What is the payback period? Q4 Should these entrepreneurs proceed with this investment? 23 24 25 26 27 28 JNEN Use Interest Rate Table to solve for asnwering QI