If a business sells for $1,000,000 (hypothetically)and the proceeds are paid out over 5 years, using the following breakdown: 10% in the first year 15% in the second year 25% in years 3 through 5 Calculate the payouts: Year 1: 10% * $1,000,000 = $100,000 Year 2: 15% * $1,000,000 = $150,000 Year 3: 25% * $1,000,000 = $250,000 Year 4: 25% * $1,000,000 = $250,000 Year 5: 25% * $1,000,000 = $250,000 To check our work, add up our proceed payouts: $100,000 + $150,000 + $250,000 + $250,000 + $250,000 = $1,000,000
