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Please provide step-by-step calculation. Thankyou and really appreciate for your help! Your sister wants to open a store that sells antique-style jewelry and accessories. She
Please provide step-by-step calculation.
Thankyou and really appreciate for your help!
Your sister wants to open a store that sells antique-style jewelry and accessories. She has $14,000 of savings to invest, but opening the store will require an initial investment of $23,000. Net cash inflows are $2,100,$1,000, and $0 in the first three months. It is expected that, as the store becomes better known, net cash inflows will become +$700 in the fourth month and grow at a constant rate of 5 percent in the following months. You want to help your sister by providing the additional money that she needs. How much money will you have to invest each month to start the store and keep it operating with a minimum cash balance of $1,000 ? You will have to invest \$ to start. You will then need to invest an additional \$ during the first month to cover the cash flow and to keep the store operating with a minimum cash balance of $1,000Step by Step Solution
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