I need to borrow $5,000 for a car because it enables me to get a job as a traveling anvil seller. Larry the Loan Shark will loan me the $5,000 at an interest rate of 90%. Principle and interest are due in exactly 12 months. With the car, I will be able to earn $10,000 in extra income over the next 12 months. What is the net cash flow by taking out the loan?

Answer rating: 100% (QA)

Lets break down the cash flow to see if the loan is a good idea Cash Inflow Extra income from sellin... View the full answer