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Carlos owns and operates a restaurant. T o help expand his business, Carlos i s considering the feasibility o f offering a wedding catering service.
Carlos owns and operates a restaurant. help expand his business, Carlos considering the feasibility offering a wedding catering service. open this service, Carlos needs a van deliver his food the various weddings. After doing some research and pricechecking, has found a suitable new van online costing $ Carlos will make down payment and finance the rest the van with amortized loan over years interest rate. Carlos predicts that catering approximately weddings a year about $ per wedding, will increase his operating receipts $ per year. However, his operating expenses such food, fuel, labor and insurance will increase approximately $ per year. Carlos assumed a straightline depreciation over years and the life the investment years. The terminal value the van $ after the years, and Carlos requires a pretax rate return capital. The marginal tax rate over the next years
What the appropriate discount rate calculate the this problem?
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What the initial cost for the service?
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What the yearly allowable depreciation using the straightline method?
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What are the yearly aftertax net returns?
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What the aftertax terminal value?
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What the
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What the maximum operating expense for food, fuel, labor and insurance that can spent this investment and still a good investment.
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