Answered step by step
Verified Expert Solution
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.
c
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 1Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started