Mr. Travis Reed is a fresh graduate from BrownStocking University with a bachelors degree in Entrepreneurship. Instead of applying for a job, Mr. Travis Reed conducted a feasibility study for a laundry shop that he would like to establish.

He graduated in 2021 and would like to start the business by 2022. He has consulted the assistance of an accountant and was able to determine the following data:

Total revenue for 2022 (December) will be Php1,200,000.00.

Total assets are 50% of the total revenue and the other half will be for the liabilities and equity.

Total investment for Mr. Travis Reed will be Php540,000.00 and for the return of investment it is still for discussion with the accountant.

Mr. Travis Reed was contented that he was able to conduct his feasibility study properly. From company profile with that of the management, technical and marketing aspects. Taking into consideration also the assistance of the accountant he hired, he firmly believed that his data are correct.

For the revenue computation, he was able to conduct the survey in the specific area that he will rent for the location. His focus was more of the TC (Traffic Count) and AC (Average Count).

The following are the concerns of Mr. Travis Reed:

If he will open in 2022, instead of having an operating income the company will have a loss of Php 250,000.00.

After a further study of the market, new establishments will be available in the area for the year (2023) and net income (after tax) of Php 300,00.00 will be realized. Return of investment will be 2years.

Question:

If you were Mr. Travis Reed, what will you do? Are you going to open the laundry shop in 2022 or delay it and open the business the following year (2023)? Justify your answer and better to support it with figures.