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please answer the question in detail please! asap Question 1 (25 points) ShoppingCartQ8 (SCQ8) intends to expand its network of convenience stores by acquiring a

please answer the question in detail please! asap
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Question 1 (25 points) ShoppingCartQ8 (SCQ8) intends to expand its network of convenience stores by acquiring a Shoppers Express (SE) Branch located on Beach Front Avenue gas station in Salmiya. SE's remaining lease period is 4 years. SCQ8 incurred and paid the consultancy and scouting fees of KWD 15,000. The cost to purchase the lease KWD 240,000 an additional KWD 40,000 will be needed to refurbish the store. New equipment (refrigerators) to be added to the new location at a cost of KWD 20,000 with a useful life of 5 years. Moreover, additional freezers (2) in surplus from other stores will be transferred to the new location. The freezer replacement value is KWD 500 but its resale value is only KWD 250. A project manager will be assigned to the project at a salary of KWD 24,000 per year for the first year. S(he) will be assisted during the first year from other store managers (5) each paid an annual salary of KWD 18,000. Starting the second year, a new store manager would be hired at the same pay scale as other store managers. The manager will be paid a 10% of his/her annual salary if the store reaches its targeted sales. Other operating costs are expected to be KWD 24,000 per year for the duration of the lease. Sales are forecasted to be KWD 300,000 for the first two years, then to increase by 10% yearly. The gross trading margin is 40% of sales. The head office (HO) decided to allocate KWD 36,000 of the HO fixed overhead to the new store for the duration of the lease. At the end of the four years, the property will be returned to its owner and the SCQ8 will pay KWD 10,000 to compensate for any damage or repairs needed for the property. The refrigerators will be transferred to other locations at their book value using the straight-line method for computing their depreciation. The company's required rate of return is 10% Required: 1. Advise the company whether it should proceed with the lease of the property and the development of the store. Show detailed computations and labelling at each step leading to the final decision. 2. Are there any additional factors to be considered for this decision

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