Is $100,000 a fair price? Why or why not?

Once a Tree is part of the deal. What can Jeff do about it in the future?

Jeff has calculated that it will take $30,000 to improve quality, design and operations. Should he spend this additional money? When?

Should Jeff finance his buy-out through a loan or equity?

Calculate:

Return on investment

Return on equity

Payback period (no. of years it will take for Jeff to get his investment back).

Internal Rate of Return (additional marks).