In order to start the business the owner got an investor to put up $500,000. The owner wants to pay back the investor out of profits, using 30% of the pre-tax profits to pay the investor, and he has guaranteed the investor he will get back $750,000.

Question #2: How long will it take to pay back the investor, if sales in year one are $2 million, and sales increase 14% each year. (Assume fixed expenses will increase each year at the rate of infllation or about 4%)