Your banker agrees to provide $10,000 today to finance a new project. In return, they require a 12% annual compound rate of interest on their investment repayable in three year's time. How much cash must the project generate to break even? FV of $1 invested in 12%, for 3 years, the table gives: 1.4049
Required:
- Cash to generate in order to break even
- Future Value
- Present Value