You are interested buying a business and the current owner is asking $180,000 for it. You require a 20 percent return on your investment. Answer the questions below using the following forecasted cash flows.

Year	EBITDA	Net Cash Flow
1	16,000	4,170
2	16,500	4,432
3	17,000	4,688
4	17,500	4,936
5	18,500	5,526
6	19,500	6,107
7	20,500	6,678
8	21,500	7,239
9	22,500	7,789
10	23,500	8,327

1. Assume you will pay $180,000 for this business. You financed the purchase with a $100,000 loan and used your equity for the rest. Calculate the capital structure.

Source:	$	%
Equity
Debt