Читать книгу Finance & Grow Your New Business - Angie Mohr - Страница 30

This tells us that the total discounted cash flows of $24,192 are higher than in the start-up scenario ($13,171). However, if the amount of the original investment had been more in the purchase scenario, this still may not be the better option. The only way to accurately compare between the two is to complete the roi calculation. In the purchase scenario, the calculation works out to:

ROI = net cash flow ÷ investment ÷ # years

ROI = 24,192 ÷ 50,000 ÷ 5 = 9.68%

The option to purchase the existing business yields a return on your $50,000 investment of 9.68 percent, while the start-up would only yield 5.27 percent. All other things being equal, purchasing the existing business makes more financial sense.

Just to reinforce the concepts, try calculating the roi analysis if all cash flows were the same but you had to invest $95,000 to purchase the existing business. Would this be the better option? The answer is no. If you have to invest $95,000 of your own money to purchase this business, the roi drops from 9.68 percent to 5 percent, thereby giving you less reward for a higher risk than starting a business from scratch.