Anita and George have spent the last few months creating a software package to manage the care of family pets. The name of the software is called Pawditor and it will be sold at a one-time fee of $50 . It costs $10 in variable costs to create and support each software license. Every sale is made via credit card, and the platform called Stripe is being used to handle transactions. Stripe charges 2.9% of the transaction and a flat fee of $.30 per transaction. All initial startup costs and estimated monthly fixed costs are already input into the spreadsheet. Pawditor expects first year sales of 350 units and a growth rate of 15% per year. They also expect their fixed expenses to grow at 7% each year.

Pawditor knows they need to cover the initial $975 in sunk costs to get things started and some initial working capital to fund monthly expenses. How many years should Pawditor factor for their initial investment? When will they begin to make money based on the assumptions presented?