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Joe Swanson has an opponuniny to acquire a franchise from The Yogun Place. Inc to dspense frozen yogurt procuds under the name the Vogunt firce.
Joe Swanson has an opponuniny to acquire a franchise from The Yogun Place. Inc to dspense frozen yogurt procuds under the name the Vogunt firce. Swanson has essembed the following information relisting to the franchise. a. A sunade location in a large shapping mall can be rented for \\( \\$ 5.120 \\) per manth b Remodeling and necessary equipment would cost \\( \\$ 331,000 \\). The equipment would have a 15 -year lite and an \\( \\$ 16,000 \\) salvage value Straight-line depredstion would be used. soles. d Operating costs would indude \\( \\$ 95.500 \\) per vear for solarles, \\( \\$ 4,500 \\) per year for insurance, and \\( \\$ 35 \\$ 00 \\) per year for utlities. in acditicn. Required: 2. Compute the simple rate of refum promsed by the outlet. IRound your answer to 2 decimal places. (le., 0.1234 shoult be consthered \12.34 2.b. Ir Swanson requires a simde rate \\( \\alpha \\) rexum of at least \12.0, should he acquire the franchise? les No 3-a. Compute the paybach penod an the outlet (Pound your answer to 1 decimal place.) 3-b. I Swanson woms a poybac. of laur years or less, will he accure the franchise
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