You plan projects revenue of $5,000, $8,000, and $10,000, in years 1 through 3. Expenses are projected to be $9,000 for each of years 1 through 3. If your only funding need is the gap between revenue and expenses, which is the best estimate of your maximum cumulative funding need?

Respuesta :

The best estimate of your maximum cumulative funding needed, based on the projected revenue and the expenses is $ 4, 000.

How to find the  maximum cumulative funding needed ?

The maximum cumulative funding needed would be the amount that would be total gap between revenue and expenses in the three years that the plan will be in effect.

In year 1, the gap is :
= 5, 000 - 9, 000

= $ - 4, 000

In year 2, the gap is:

= 8, 000 - 9, 000

= $ - 1, 000

In year 3, the gap is:
= 10,000 - 9, 000

= $ 1, 000

The cumulative funding needed is :
= ( -4,000 + - 1, 000 ) + 1, 000

= - $4, 000

You have a maximum cumulative funding needed of $ 4, 000.

Find out more on cumulative funding needed at https://brainly.com/question/14953890

#SPJ1