Reply To: How long should it take to recoup a startup outlay

[James Millar]

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Investment example 3 (assume no inflation time value of money)

Buy or start a business at start of year 1 for $100,000 (outflow)
Then make net trading profits (inflows) of $15000 year 1, $10000 year 2, $10000 year 3, $5000 year 4 and $0 year 5.
Then exit (sell) the business at end of that for $30,000 (inflow)

What is your return on investment?

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