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1. As a cost engineer, a client would like to seek your technical advice concerning a business with the following data: The capital allotted for
1. As a cost engineer, a client would like to seek your technical advice concerning a business with the following data: The capital allotted for the business is Php 8,700,000. Based on a preliminary market study, it was theoretically projected that the daily revenue sales would be Php 29,000 . Moreover, the business could be sold at Php 1,500,000 after its economic life. A. The requirement of the client is to earn at least 50%. Will the business be economically viable for a period of 8 years? Support your answer by using (i) Rate of Return (ROR) Method, (ii) Annual Worth (AW) Method, (iii) Present Worth (PW) Method, (iv), Future Worth (FW) Method. **Use all methods. B. If the business is economically justifiable, when exactly will the payback period be? Suppose the business will start its operation on January 1, 2024. The capital allotted for the business is Php 8,700,000. Based on a preliminary market study, it was theoretically projected that the daily revenue sales would be Php 29,000. Moreover, the business could be sold at Php 1,500,000 after its economic life. A. The requirement of the client is to earn at least 50%. Will the business be economically viable for a period of 8 years? Support your answer by using (i) Rate of Return (ROR) Method, (ii) Annual Worth (AW) Method, (iii) Present Worth (PW) Method, (iv), Future Worth (FW) Method. **Use all methods. 1. As a cost engineer, a client would like to seek your technical advice concerning a business with the following data: The capital allotted for the business is Php 8,700,000. Based on a preliminary market study, it was theoretically projected that the daily revenue sales would be Php 29,000 . Moreover, the business could be sold at Php 1,500,000 after its economic life. A. The requirement of the client is to earn at least 50%. Will the business be economically viable for a period of 8 years? Support your answer by using (i) Rate of Return (ROR) Method, (ii) Annual Worth (AW) Method, (iii) Present Worth (PW) Method, (iv), Future Worth (FW) Method. **Use all methods. B. If the business is economically justifiable, when exactly will the payback period be? Suppose the business will start its operation on January 1, 2024. The capital allotted for the business is Php 8,700,000. Based on a preliminary market study, it was theoretically projected that the daily revenue sales would be Php 29,000. Moreover, the business could be sold at Php 1,500,000 after its economic life. A. The requirement of the client is to earn at least 50%. Will the business be economically viable for a period of 8 years? Support your answer by using (i) Rate of Return (ROR) Method, (ii) Annual Worth (AW) Method, (iii) Present Worth (PW) Method, (iv), Future Worth (FW) Method. **Use all methods
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