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A young millionaire bought a commercial lot in a busy street of Cagayan de Oro. He plans to franchise a business to be constructed on
A young millionaire bought a commercial lot in a busy street of Cagayan de Oro. He plans to franchise a business to be constructed on his commercial lot and has three options. Perform present worth analysis with the cost shown below. The rate of return is 10% per year. Mang Inasal 45,000,000 Chowking 35,000,000 Jollibee 60,000,000 7,000,000 5,000,000 2,000,000 3,500,000 10,000,000 20 20 20 First cost Annual operating cost (AOC) 9,000,000 Salvage value Service life, years Michele is the general manager of McDonald's Tibanga, and she wishes to choose between two manufacturers of the disinfection spray gun for disinfecting the tables and chairs. Use the cost estimates below to select the more economical unit at a rate of return of 8% per year. First cost Berovan 15,000 Annual operating cost (AOC) 600 Salvage value 1,500 Service life, years 4 DongHe 20,000 900 2,000 12
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