Cash Flow Reality-03.2013
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1 2 3 4 5 6 7 8 9 10 11 12 $(80,000.00) $(60,000.00) $(40,000.00) $(20,000.00) $- $20,000.00 $40,000.00 $60,000.00 Months Revenue Which option below – Financing or Cash – produces immediate, positive cash flow? This chart compares the cash flow dominance of financing vs. paying cash for equipment costing $65,000. The new equipment will generate $3500 in new revenue per month and increase 10% each month, $10.5MM during its useful life. Finance cost is 8% annually for 36 months.
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Chart depicting the net cash flow gain of financing vs. paying cash for equipment.
Transcript of Cash Flow Reality-03.2013
1 2 3 4 5 6 7 8 9 10 11 12
$(80,000.00)
$(60,000.00)
$(40,000.00)
$(20,000.00)
$-
$20,000.00
$40,000.00
$60,000.00
New Revenue Net Financing Revenue Net Cash Revenue
Months
Revenue
Which option below – Financing or Cash – pro-duces immediate, positive cash flow?
This chart compares the cash flow dominance of financing vs. paying cash for equipment costing $65,000. The new equipment will generate $3500 in new revenue per month and increase 10% each month, $10.5MM during its useful life. Finance cost is 8% annually for 36 months.