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RO Len and Joan intend to invest $200,000 in their CompuTech Sales and Service retail store. Their financial projections show that during the first year
RO Len and Joan intend to invest $200,000 in their CompuTech Sales and Service retail store. Their financial projections show that during the first year of operations, CompuTech will generate $25,000 in profit, with substantial increases in the following years. To finance their business, Len and Joan will need $100,000 in loans (short term and long-term borrowings) from the bank at 6% (after taxes). The other $100,000 will come from their savings. The Millers are currently earning 8% (after taxes) on their savings. Len and Joan intend to invest $200,000 in their CompuTech Sales and Service retail store. Their financial projections show that during the first year of operations, CompuTech will generate $25,000 in profit, with substantial increases in the following years. To finance their business, Len and Joan will need $100,000 in loans (short-term and long-term borrowings) from the bank at 6% (after taxes). The other $100,000 will come from their savings. The Millers are currently earning 8% (after taxes) on their savings
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