Susan is planning to construct a Football Sport Arena on which has 50 courts to be used at any point of time. The usage of the courts is expected to be 100%. The initial investment cost for the sport arena is MYR600,000. It is expected to generate revenue MYR3,000 per court in year 1 and 10% increase for every year from year 2 to 6. The operating cost per generator is MYR1,000 and expected to increase by 10% every year from year 2 to 6. At year 6 it can cease the operation by selling the entire business for MYR400,000. The cost of capital is expected to be about 12%. Using the Payback Period Technique (PBP) methods, should the project is acceptable or rejected?
Susan is planning to construct a Football Sport Arena on which has 50 courts to be used at any point of time. The usage of the courts is expected to be 100%.
The initial investment cost for the sport arena is MYR600,000. It is expected to generate revenue MYR3,000 per court in year 1 and 10% increase for every year from year 2 to 6.
The operating cost per generator is MYR1,000 and expected to increase by 10% every year from year 2 to 6. At year 6 it can cease the operation by selling the entire business for MYR400,000. The cost of capital is expected to be about 12%.
Using the Payback Period Technique (PBP) methods, should the project is acceptable or rejected?
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Susan is planning to construct a Football Sport Arena on which has 50 courts to be used at any point of time. The usage of the courts is expected to be 100%.
The initial investment cost for the sport arena is MYR600,000. It is expected to generate revenue MYR3,000 per court in year 1 and 10% increase for every year from year 2 to 6.
The operating cost per generator is MYR1,000 and expected to increase by 10% every year from year 2 to 6. At year 6 it can cease the operation by selling the entire business for MYR400,000. The cost of capital is expected to be about 12%.
Using the Profitability index (PV) and net profit value (NPV) method, should the project is acceptable or rejected?
by Bartleby ExpertSusan is planning to construct a Football Sport Arena on which has 50 courts to be used at any point of time. The usage of the courts is expected to be 100%.
The initial investment cost for the sport arena is MYR600,000. It is expected to generate revenue MYR3,000 per court in year 1 and 10% increase for every year from year 2 to 6.
The operating cost per generator is MYR1,000 and expected to increase by 10% every year from year 2 to 6. At year 6 it can cease the operation by selling the entire business for MYR400,000. The cost of capital is expected to be about 12%.
Using the Accounting
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