As indicated a $40,000 bank loan is needed for repayment over a five year period and the financial forecast indicates a $1,000 monthly transfer to the bank for loan repayment. Security for the loan is available by second mortgage on the Rossi home which has been valued at $125,000 and has $25,000 balance remaining on the first mortgage. According to the projections the loan can be repaid without difficulty.
It is intended that the FOODAWAY business will be operated for five years. The objective is to build the business successfully and resell while a three year lease period remains for a buyer. It is estimated that the resale price in five years will be exceed the present purchase figure and provide a reasonable return on the initial investment as well as paying off the bank loan View Full Article »
