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Question 04 Mr. Cod is opening its restaurant near cantt area. It is expecting initial revenue of $72,000 per year with an annual increase of about $400 as per statistics. The initial investment required for the restaurant is $170,000 and MARR per year is 8%. The yearly expenses are expected to reach around $35,000. Find out if this income is large enough to cover the investment for a study period of 15 years.

Question 04 Mr. Cod is opening its restaurant near cantt area. It is expecting initial revenue of $72,000 per year with an annual increase of about $400 as per statistics. The initial investment required for the restaurant is $170,000 and MARR per year is 8%. The yearly expenses are expected to reach around $35,000. Find out if this income is large enough to cover the investment for a study period of 15 years.

Essentials Of Investments
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
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Question 04 Mr. Cod is opening its restaurant near cantt area. It is expecting initial revenue of $72,000 per year with an annual increase of about S400 as per statistics. The initial investment required for the restaurant is $170,000 and MARR per year is 8%. The yearly expenses are expected to reach around $35,000. Find out if this income is large enough to cover the investment for a study period of 15 years.
Transcribed Image Text:Question 04 Mr. Cod is opening its restaurant near cantt area. It is expecting initial revenue of $72,000 per year with an annual increase of about S400 as per statistics. The initial investment required for the restaurant is $170,000 and MARR per year is 8%. The yearly expenses are expected to reach around $35,000. Find out if this income is large enough to cover the investment for a study period of 15 years.
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