5. Using the Cumulative Cashflow curve in Figure 1 below, what is the amount of money you must raise before you start this venture? When will you recover that investment and become profitable?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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5. Using the Cumulative Cashflow curve in Figure 1 below, what is the amount of money you
must raise before you start this venture? When will you recover that investment and become
profitable?
Cum Cashflow
$300,000
$200,000
$20R000
$1600
$1000
$100,000
$0
11
12
13
14
15
16
-$100,000
-$10000
-S1000
-$200,000
sz00.00
S2,000
-$300,000
$300,a00
-$400,000
FIGURE 1
Transcribed Image Text:5. Using the Cumulative Cashflow curve in Figure 1 below, what is the amount of money you must raise before you start this venture? When will you recover that investment and become profitable? Cum Cashflow $300,000 $200,000 $20R000 $1600 $1000 $100,000 $0 11 12 13 14 15 16 -$100,000 -$10000 -S1000 -$200,000 sz00.00 S2,000 -$300,000 $300,a00 -$400,000 FIGURE 1
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