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III. The Karlos Junior is a fast food restaurant chain. Potential franchisees are given the following revenue and cost information Building and equipment Annual revenue
III. The Karlos Junior is a fast food restaurant chain. Potential franchisees are given the following revenue and cost information Building and equipment Annual revenue P 4,900,000 5,200,000 3,800,000 Annual cash operating costs The building and equipment have a useful life of 20 years. The straight-line method for depreciation is used. The income tax is 40%. Given these facts, (1) What is the payback period? (2) what is the Accounting rate of return? (20 pts)
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