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In order to start the business, the owner has found an investor who will put up $500,000. The owner wants to pay back the investor
In order to start the business, the owner has found an investor who will 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 the investor $750,000, if sales in year one are $2 million, and sales increase 13% each year. (Assume fixed expenses
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