00:01
To start, we can calculate or we can determine our investment amounts for each time period.
00:13
For time zero, we are going to do 40 % times 250 ,000, and we are going to get $100 ,000.
00:25
For time one, we are going to do 40 % times 250 ,000 again, and we will again get $100 ,000.
00:39
And then for time two, we are going to take 20 % times 250 ,000, and we are going to get $50 ,000.
00:50
Then we want to calculate our cash flow.
00:52
We are going to take our revenue minus our expenses.
00:57
So for year three, we are doing 70 ,000 minus 40 ,000, which is going to give us $30 ,000.
01:06
For year four, we are doing 50 ,000 minus 40 ,000, which is going to give us $10 ,000.
01:15
For year five, we are doing 50 ,000 minus 20 ,000, which is going to give us $30 ,000.
01:26
For year six, we are doing 100 ,000 minus 20 ,000, which is going to give us $80 ,000.
01:34
And then last but not least, for year seven, we are doing 50 ,000 minus 50 ,000, which is going to give us $0.
01:43
Then we want to calculate our tax deductions for each year.
01:48
For year three, we have 100%.
01:51
So we are going to do 100 % times 40 ,000, which is going to give us $40 ,000.
01:57
For year four, we are going to do 100, sorry, year four we are doing 80 % of 40 ,000, which is $32 ,000...