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Today is 1 January 2 0 2 4 . Ella used $ 2 0 0 , 0 0 0 to purchase a florist business in
Today is January Ella used $ to purchase a florist business in Sydney. To operate this business, Ella needs to pay rent, maintenance costs, and labor costs. Here are the details:
Rent will be paid by the end of each month with an amount of $
Labor cojit will be paid by the end of each month with an amount of $
Maintenance cost will be paid by the end of each quarter with an amount of $
Ella predicts that this florist franchise initially can have monthly revenue of $ Assume that Ella can obtain this amount by the end of each month. Ella forecasts that this revenue amount will increase at the rate of pa The revenue increase will only happen at the beginning of each year. For example, this florist franchise initially has monthly revenue of $ in Then the revenue amount will become $ per month in and $ per month in
Ella plans to run this business for three years and predicts that she can sell this business on January with an amount of $
a Calculate the monthly net cash flows. Assume that Ella can reinvest all profit at a rate of pa Use Goal Seek to find revenue increasing rate pa if Ella requires a holding period yield rate of pa for this investment from January to January Label this sheet as "Part a
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