Nori Restaurant sold a fast-food restaurant franchise to Irish. The sale agreement, signed on January 20x1, called for a P200,000 down payment plus two (2) P100,000 annual payments representing the value of initial franchise services rendered by Nori Restaurant. In addition, the agreement requires the franchisee to pay 10% of its gross revenues to the franchisor. The restaurant opened early in 20x1 and its sales for the year amounted to P1,250,000. The prevailing rate for a similar note was 12%. REQUIRED: Compute the following: (Round off PV factor in four (4) decimal places) Total franchise fee revenue Total revenue
Nori Restaurant sold a fast-food restaurant franchise to Irish. The sale agreement, signed on January 20x1, called for a P200,000 down payment plus two (2) P100,000 annual payments representing the value of initial franchise services rendered by Nori Restaurant. In addition, the agreement requires the franchisee to pay 10% of its gross revenues to the franchisor. The restaurant opened early in 20x1 and its sales for the year amounted to P1,250,000. The prevailing rate for a similar note was 12%. REQUIRED: Compute the following: (Round off PV factor in four (4) decimal places) Total franchise fee revenue Total revenue
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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Nori Restaurant sold a fast-food restaurant franchise to Irish. The sale agreement, signed on January 20x1, called for a P200,000 down payment plus two (2) P100,000 annual payments representing the value of initial franchise services rendered by Nori Restaurant. In addition, the agreement requires the franchisee to pay 10% of its gross revenues to the franchisor. The restaurant opened early in 20x1 and its sales for the year amounted to P1,250,000. The prevailing rate for a similar note was 12%.
REQUIRED: Compute the following: (Round off PV factor in four (4) decimal places)
- Total franchise fee revenue
- Total revenue
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