You have decided to add a delivery option to your restaurant. The new equipment and training will cost $43,000. You expect that the change will increase revenue by $15,000 per year and expenses by $5,000 per year. You plan to sell the delivery part of your business in 7 years for $30,000. Assume all cash outflows are paid at the beginning of the year and cash inflows are received at the end of the year. You are worried that with the proliferation of services like "Skip the Dishes" you may not be able to receive as much money when you sell the delivery portion of your business in 7 years. What is the lowest såle price that would still make this an acceptable project if your cost of capital is 10%? Your Answer: Answer

You have decided to add a delivery option to your restaurant. The new equipment and training will cost $43,000. You expect that the change will increase revenue by $15,000 per year and expenses by $5,000 per year. You plan to sell the delivery part of your business in 7 years for $30,000. Assume all cash outflows are paid at the beginning of the year and cash inflows are received at the end of the year. You are worried that with the proliferation of services like "Skip the Dishes" you may not be able to receive as much money when you sell the delivery portion of your business in 7 years. What is the lowest såle price that would still make this an acceptable project if your cost of capital is 10%? Your Answer: Answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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