In order for National Furniture to successfully complete it’s plans for expansion, an investment of $1,250,000.00 will be required.  The owner will contribute $250,000.00 of his own money and require $1,000,000.00 financing from a lender.  The business requires a $1,000,000.00 loan that will be repaid in monthly installments at 12% interest and within 6 years.  The table below (Sources and Uses of Capital) represents how the funds will be utilized in a one-year period.  National Furniture will primarily use the money in three areas: to purchase new manufacturing equipment, to complete sales retraining, and to bolster working capital while the company rebounds.