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    This document outlines the cash flows and profit distribution over three years for an initial investment project. It shows an initial loss in the first year, positive cash flow in the second year resulting in a payback period of 2 years and 8 months, and profit distributions of 25% of profits in the second and third years, amounting to $4.9 million and $7 million respectively.

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    This document outlines the cash flows and profit distribution over three years for an initial investment project. It shows an initial loss in the first year, positive cash flow in the second year resulting in a payback period of 2 years and 8 months, and profit distributions of 25% of profits in the second and third years, amounting to $4.9 million and $7 million respectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    29 views1 page

    Payback

    Uploaded by

    api-246267514
    This document outlines the cash flows and profit distribution over three years for an initial investment project. It shows an initial loss in the first year, positive cash flow in the second year resulting in a payback period of 2 years and 8 months, and profit distributions of 25% of profits in the second and third years, amounting to $4.9 million and $7 million respectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Year

    Initial Investment
    1
    2

    Cash flow(earning)

    (9,866,940)

    Cumulative cash
    flow
    (4,067,000)
    (13,933,940)
    5,658,988

    19,592,928
    Payback period=2 years and 8 months (13,933,940 x 12)
    19,592,928
    Profit distribution;
    25% of the profit
    First year will be a loss
    Second year 19,592,928 x 25% = 4,898,232
    Third year 27,834,430 x 25% = 6,958,607

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