Long-Term Financial Management Submission

profiletarluerita

Assignment Details

Deal or No Deal?

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase price is $240,000. The net cash flows for the project are $30,000 per year for the next 5 years. You plan to borrow the money for this investment at 5%. 

  1. Prepare a net present value calculation for this project. What is the net present value of this project?
  2. Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project?
  3. Is this a good investment? What would be a good price at which to purchase this business?

Submit an Excel spreadsheet which must include the answers to all 3 questions:  1) A Net Present Value calculation, 2) a Simple Payback Period calculation,  and 3) the answer to question regarding whether this is a good investment and what the best price should be.

The use of 1 scholarly source (e.g., textbook, article from the CEC Library) is 

required.


Deliverable Length:  1 Excel spreadsheet with answers to all questions

    • Posted: 2 months ago
    • Due: 
    • Budget: $10
    Tags: addjoin
    Answers 1
    • Kindly rate the answer
      Answer rating:5Stars out of1ratings

    Purchase the answer to view it

    blurred-text
    • Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the …

    • Rated 2 times

      Deal or No Deal

      Assignment Details

      Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as …

    • Rated 1 times

      Business Finance

      Assignment Details

      Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as …

    • Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase …

    • Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the …

    • Not rated

      Finance 4

      Deal or No Deal?

      Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase …