Question
Payback Period and ARR. The John-in-the-Box Store is a fast food restaurant chain. Potential franchisees are given the following revenue and cost information: Building and
Payback Period and ARR. The John-in-the-Box Store is a fast food restaurant chain. Potential franchisees are given the following revenue and cost information:
Building and equipment $490,000
Annual revenue $520,000
Annual cash operating costs $380,000
The building and equipment have a useful life of 20 years. The straight-line method for depreciation is used. The income tax is 40 percent. Given these facts: (a) What is the payback period? (b) What is the accounting rate of return?
Please do not copy from Chegg. Otherwise i have to report the answer.
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
