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5 July, 08:41

You believe your restaurant concept can generate $50,000 in net profit per year. Your investors demand at 20% return on investment. How much can you invest?

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  1. 5 July, 08:53
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    You believe your restaurant concept can generate $50,000 in net profit per year. Your investors demand at 20% return on investment. How much can you invest?

    If your business generates $50,000 in net profit and the investors demand 20% return on investment to solve for how much the investors will get and how much you can invest follow the steps below:

    How much the investors will get in return on investment (ROI):

    ($50,000) (20%) = $10,000 is what the investors will receive

    How much can you invest:

    $50,000 - $10,000 = $40,000 is what you can invest
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