Today is 1 January 2021. Sam used $200,000 to purchase a cafe business in Sydney. To operate this business, Sam needs to pay rent, maintenance costs and labour costs. Here are the details Rent will be paid by the end of each month with an amount of $2,000. Labour cost will be paid by the end of each month with an amount of $10,000. Maintenance cost will be paid by the end of each quarter with an amount of $500. Sam predicts that this cafe franchise initially can have monthly revenue of $13,000. Assume that Sam can obtain this amount by the end of each month. Sam forecasts that this revenue amount will increase at the rate of y% p.a. The revenue increase will only happen at the beginning of each year. For example, this cafe franchise initially has monthly revenue of $13,000 in 2021. Then the revenue amount will become $13,000(1+y%) per month in 2022 and $13, 000(1 + y%)2 per month in 2023. Sam assumes the value of y is the same as the Australian CPI rate for 2020. You need to use FactSet to find the Australian CPI rate for 2020. Sam plans to run this business for three year and predict that he can sell this business on 1 January 2024 with an amount of $210,000.

Question - Given that Jack needs to pay tax for his profit at a rate of 20% and tax is paid by end of each quarter1 , calculate the monthly net cash flows (Assume that Jack does not need to pay tax for the proceeds from selling the business.). Assume that Jack can reinvest all after-tax profit at a rate of x% p.a. Use Goal Seek to find this reinvestment rate if Jack requires a holding period yield rate of 7.5% p.a. for this investment (from 1 January 2021 to 1 January 2024). (if u can please show how you solved this on excel this would be highly appreciated and will upvote, thank you)