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don't use excel PizzaRush, which is located in the general Los Angeles area, fares very well with its competition in offering fast delivery. Many students
don't use excel
PizzaRush, which is located in the general Los Angeles area, fares very well with its competition in offering fast delivery. Many students at the area universities and community colleges work part-time delivering orders made via the web at PizzaRush.com. The owner, a software engineer graduate of USC, plans to purchase and install five portable, in-car systems to increase delivery speed and accuracy. The systems provide a link between the web order-placement software and the in-car GPS system for satellite-generated directions to any address in the Los Angeles area. The expected result is faster, friendlier service to customers, and more income for PizzaRush. Each system costs exist4600, has a 5-year useful life, and may be salvaged for an estimated exist300. Total operating cost for all systems is exist650 for the first year, increasing by exist50 per year thereafter. The MARR is 10% per year. a) Draw cash flow diagram. b) Perform an annual worth evaluation that answers the following a. How much new annual revenue is necessary to recover only the initial investment at an MARR of 10% per year? b. The owner conservatively estimates increased income of exist5000 per year for all five systems. Is this project financially viable at the MARRStep by Step Solution
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