Based on the information below, please conduct a break even analysisStartup CostsLicense: $1,500Equipment/Capital CostsPurchase of business: $100,000Start-up capital: $100,000Food equipment: $150,000Permits: $1,000Rental lease costs (rent advance/deposit):$25.000Computer equipment: $5,000Computer software: $25,000Insurances: $30,000Uniforms: $2,000PPE: $3,000Flyers/Business Cards: $500Total: $63,000Phones: $4,500Security system: $6,000Total: $390,500

Break Even point is a level at which firm earns no profit or incurred no losses. At this point,…

Based on the information below, please conduct a break even analysis Startup Costs License: $1,500 Permits: $1,000 Equipment/Capital Costs Purchase of business: $100,000 Start-up capital: $100,000 Food equipment: $150,000 Rental lease costs (rent advance/deposit): $25,000 Computer equipment: $5,000 Computer software: $25,000 Phones: $4,500 Insurances: $30,000 Uniforms: $2,000 PPE: $3,000 Flyers/Business Cards: $500 Total: $63,000 Security system: $6,000 Total: $390,500

Based on the information below, please conduct a break even analysis Startup Costs License: $1,500 Permits: $1,000 Equipment/Capital Costs Purchase of business: $100,000 Start-up capital: $100,000 Food equipment: $150,000 Rental lease costs (rent advance/deposit): $25,000 Computer equipment: $5,000 Computer software: $25,000 Phones: $4,500 Insurances: $30,000 Uniforms: $2,000 PPE: $3,000 Flyers/Business Cards: $500 Total: $63,000 Security system: $6,000 Total: $390,500

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mary is considering opening a hobby and craft store. She plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the NPV of this venture? Cost of equipment $335,000 Working capital needed $185,000 Annual cash inflow from sales $195,000 Annual cash outflow for operating costs $115,000 Overhaul (repair) of equipment in year 3 $17,500 Salvage value of equipment $20,000
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A client is considering replacing his heating system in an office building. Two systems are being considered. System A has higher initial costs but lower recurring costs. System B has lower initial costs but higher recurring costs. The client expects that this office building would be re-constructed 18 years later. The discount rate to be used is 10%. System A System B Initial costs $500,000 $250,000 Recurring costs Minor repairs 5,000 per annum 8,000 per annum Fuel 20,000 per annum 25,000 per annum Major repairs 35,000 every 10 years 30,000 every 5 years Please conduct a cost-in-use study of the above two systems covering both initial and recurring costs until 18 years after replacing and advise which of the above methods is the more economical option for the client. (Please copy and paste the following answer format in your answer box and use it to put in your answers) System A…
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