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A grocery store owner in Vancouver, British Columbia, Mr . Specter has been very successful for over 3 5 years. Mr . Specter is considering
A grocery store owner in Vancouver, British Columbia, Mr Specter has been very successful for over years. Mr Specter is considering a neglected ice cream store that has been up for sale in Metro Vancouver. Mr Specter asked for you to review this as a consultant. Mr Specter provided you with the following information. A replacement ice cream machine is worth $ with expected life is years. new ice cream machine will rejuvenate the store; however, the store will take time to improve its sales. Sales after first year acquisition is ice creamsyear with increase year over year. The ice cream at Earnest is at $ ice cream. Ice cream price is expected to rise by per year due to inflation. In terms of cost variable cost is expected to be of the price, the cost is expected to increase by inflation as noted above. Mr Specter will require a new employee to run the store. The salary is minimum wage per hour for hours a week, these are also expected to increase by inflation. Given that the ice cream store will require marketing, digital marketing company has quoted $ year expected to increase by inflation. Mr Specter does not have a return on a similar risk investment and is asking for your advice. Calculation and analysis of NPV IRR and Payback Period. SHOW CALCULATION STEPS
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