Joe Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc to dispense frozen yogurt products under the name The Yogurt Place Swanson has assembled the following information relating to the franchise a. A suitable location in a large shopping mall can be rented for $4.280 per month b. Remodelling and necessary equipment would cost $351,500. The equipment would have a 15 year life and an $15,500 salvage value Straight-line depreciation would be used On the basis of similar outlets elsewhere, Swanson estimated that sales would total $426,000 per year. Ingredients would cost 20% a Operating costs would include $126,500 per year for salaries 55,600 per year for insurance, and $36 200 per year for utilities. In addition, Swanson would have to pay a commission to The Yogurt Place of 12 5% of sales. of sales Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet JOE SWANSON Income Statement Deduct Operating expenses Total operating expenses Labeau Products Ltd. of Perth, Australia, has $44,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Initial Investment Annual cash inflows Single cash inflow at the end of 10 years Life of the project Investment Options Project X Project $ 44,000 $44.ee 13,500 195,000 10 year's 10 years Labeau's discount rate for both projects is 18% (Ignore income taxes.) Click here to view Exhibit 10.1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables Required: Determine the net present value (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.) Net Present Value Project X Project Y Sharkey's Fun Centre contains a number of electronic games, as well as a miniature golf course and various rides located outside the building, Paul Sharkey, the owner, would like to construct a water slide on one portion of his property, Sharkey has gathered the following information about the slide: a Water slide equipment could be purchased and installed at a cost of $330,000. According to the manufacturer, the slide would be usable for 12 years, after which it would have no salvage value b. Sharkey would use straight-line depreciation on the slide equipment c To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $58,000 to an amusement park in a nearby city d Sharkey has concluded that about 34.000 more people would use the water slide each year than have been using the rides. The admission price would be $4.20 per person (the same price that the Fun Centre has been charging for the rides) e. On the basis of experience at other water slides, Sharkey estimates that incremental operating expenses each year for the slide would be as follows: salaries, $52,400, insurance, $2,600, utilities, $8,000, maintenance, 56,060, Required: 1. Prepare an income statement showing the expected incremental net income each year from the water slide