Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me that how they got the value of Pw, Aw, FW, and err? it's very urgent. c Assumptions The aim of the

Can someone help me that how they got the value of Pw, Aw, FW, and err? it's very urgent.

image text in transcribedc

Assumptions The aim of the project is to establish small or medium sized fitness centre. The options are to build a new facility, or rent a facility. The minimum attractive rate of return (MARR) is set to be 20%. The MARR was set so the enterprise can start making profit after 3 years. The lifetime of the project is 10 years, which is the study period to evaluate the project. Expecting 300-400 members. Minor Alternatives Project size may vary from small (200m2) to medium (400m2). The location will be Amerat, Khodh Block 6, or the wave muscat. The time for completion will be around 3 to 12 months. The options as stated above, to buy a land and build the facility, or rent a facility. The equipments will be purchased; the suppliers will be from UK, or USA. The financing, the four investors have budget of total OMR 120,000, but if the investment requires more capital, a loan from the bank will be taken. The price of the annual memberships in the fitness centre will be depending on the location. Major Alternatives Alternative \#1: At Al Amerat, buy the land of medium size (400m2), and build the facility, buy lower quality equipment from ProForm, UK. It will take 12 months to complete. The membership price is OMR 90 per year. Expecting 300 members. Tahle 1- Fconomical Analveic for Alterative 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance

Authors: Chad Zutter, Scott Smart

16th Global Edition

1292400641, 978-1292400648

More Books

Students also viewed these Finance questions