Purchase Solution

New computer; start up costs, PVC, PVB, monthly payment

Not what you're looking for?

Ask Custom Question

What would you include in your plan to convince your investors that your small business will generate income?

Meg wants to buy a new computer for her business with Internet access. The cost is $5100. The cable company charges $200 to install and $50/mo usage fee. Meg expects to buy with a down payment of $100, financing the balance at 8% over 4 yrs. She will sell the computer for $1000 when she is done with it and expects a cash flow improvement to her business of $500/mo due to the computer system. She is in the 25% tax bracket.

a) What are her start up costs?
b) What is the PVC?
c) What is the PVB?
d) What is the monthly payment?

Purchase this Solution
Solution Summary

The expert determines what would be included in a plan to convince investors that small businesses will generate income. PVC and PVB are examined.

Solution Preview

Answer

What would you include in your plan to convince your investors that your small business will generate income?
The following points can be included in the plan to convince the investors;
1. The business even ...

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Capital Budgeting of New Machinery

    255185 The Jackson Company new machine: PVB, PVC, NPV The Jackson Company is considering the purchase of a new machine that is expected to reduce cash outflows. The cost of this machine is $29,000.

  • PBC, PVC, and NPV for Company A

    The net present value of benefits (pvb) = 5000/(1+10%)^1+8000/(1+10%)^2+12000/(1+10%)^3+14000/(1+10%)^4 =29734.99 2. The net present value of costs (pvc) =30000 3.

  • valuing business opportunities

    A more common way of expressing this is to say that the net present value (NPV) is the present value of the benefits (PVB) minus the present value of the costs (PVC) NPV = PVB - PVC The hurdle rate is the minimum acceptable rate of return on

  • valuing business opportunities

    A more common way of expressing this is to say that the net present value (NPV) is the present value of the benefits (PVB) minus the present value of the costs (PVC) NPV = PVB - PVC The hurdle rate is the minimum acceptable rate of return on a

  • Monthly payments

    If Mary faces the following monthly repair costs and has $1 million to start the fund today, what will be her monthly payments into the fund in order to assume that all repair costs will be covered?

  • Ohm Depot Co equipment purchase: PVB, NPV, Payback, Profitability index

    323303 Ohm Depot Co equipment purchase: PVB, NPV, Payback, Profitability index The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money.

  • Suzie's Silk Scarves

    494986 Suzie's Silk Scarves Suzie's Silk Scarves is a start-up that sells high quality scarves out of a boutique store. The monthly rent of the store is $1,500 and Suzie has one manager who runs the store and earns $3,000 per month.

  • Monthly Cash Budget: Cyrus Brown Manufacturing

    So, the "start-up month" looks bad. Once the firm is past the start-up month, the collections from the prior month cover the outflows of the current month with a good margin. If you were a bank manager, would you want CBM as your client?

  • Leasing and The Lease vs. Buy decision

    Economic feasibility analysis provides cost-benefit justification with being regard to the expenses of a system, which include procurement, project-specific, start-up, and operational costs. The cost of any financing would be addressed here. ?

View More Related Solutions