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

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    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?

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    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 ...

    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.

    $2.19

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