An ambitious student wants to start a restaurant, so he wants to buy a nice kitchen set
Question:
An ambitious student wants to start a restaurant, so he wants to buy a nice kitchen set consisting of state-of-art grilles with two tables, three stoves, two dishwashers, three refrigerators, two ovens, and three microwaves along with some other stuff. So he plans on spending \(\$ 112,000\) on the equipment alone. He feels that these all would produce him a net income of \(\$ 25,000\) per year. If he does not change his mind and keeps these equipment for 4 years considering he does not lose much in this business, what would be the resale value of all this equipment at the EOY 4 to justify his investment? A \(15 \%\) annual ROI is desired.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Project Management Systems Principles And Applications
ISBN: 272859
2nd Edition
Authors: Adedeji B. Badiru
Question Posted: