A restaurant wants to expands its dining capacity. The building they want to acquire cost P400,000 and estimated a renovation cost of P180,000. The building will have an estimated salvage value of P120,000 at the end of 8 years. The new average annual income will be P450,000 with annual expenses worth P110,000. If the they require a minimum return o 12% from the expansion, will the investment be worth it?
A restaurant wants to expands its dining capacity. The building they want to acquire cost P400,000 and estimated a renovation cost of P180,000. The building will have an estimated salvage value of P120,000 at the end of 8 years. The new average annual income will be P450,000 with annual expenses worth P110,000. If the they require a minimum return o 12% from the expansion, will the investment be worth it?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:A restaurant wants to expands
its dining capacity. The building
they want to acquire cost
P400,000 and estimated a
renovation cost of P180,000.
The building will have an
estimated salvage value of
P120,000 at the end of 8 years.
The new average annual income
will be P450,000 with annual
expenses worth P110,000. If the
they require a minimum return of
12% from the expansion, will the
investment be worth it?
Transcribed Image Text:3.
A bottle factory
having a monthly fixed cost of P15,000 has a
monthly capacity of 500 bottles
and can be sold at P70 each. The cost of
production is as follows; variable
cost P10/unit, labor cost P12/unit and material
cost P17 per unit.
a)
breakeven point.
Determine the
b)
Determine the
breakeven point if one out of every 10 units
produced is defective and is
rejected.
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