business

business

User_6843 added on 04/18/15 at 12:08 AM (PST):

The work is good but this has to be something that doesn't sound so generic.
I wrote a scenario that I think could be applied just by doing a few tweaks. Also please include the excel file you used to make the schedules and graph.

Upon graduation I intend to go into business with my father who sells construction equipment. He is currently in debt for the amount of $15,000 to his suppliers, due to a theft a few months ago. The supplier is willing to open a credit line on my name, but needs an $8,000 payment towards the previous debt. Once payment is made he will open the credit line to $30,000 and wants a monthly payment of $500 until repayment is complete. I estimated that I will need $12,000 to cover the suppliers initial payment and other expenses. I shopped around for bank loans and the best option of borrowing $12,000 as capital to start from a local bank at a compound annual interest rate of 6.2%. My other option was to borrow from my uncle whos in the same type of business and offered to help. He would lend me the money of the condition that I pay him back within the next two years at an interest rate that he would have earned by committing his money in a savings account. The savings account charges an interest rate of .95%. Miller expects to have the following cash flows before payment of loan and interest.

User_6843 added on 04/18/15 at 12:09 AM (PST):

BTW I will give a bonus, upon completion:-)

User_6843 added on 04/21/15 at 04:07 AM (PST):

What's going on? I'm not seeing anything...