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solve and draw cashflow diagram 4. PizzaRush, Inc, which is located in the general Los Angeles area, fares very well with its competition in offering
solve and draw cashflow diagram
4. PizzaRush, Inc, which is located in the general Los Angeles area, fares very well with its competition in offering fast delivery. Many students at the area universities and community colleges work parttime delivering orders made via the web at PizzaRush.com. The owner, a software engineering graduate of UPPR, plan to purchase and install five portable in-car systems to increase delivery speed and accuracy. The system provides a link between the web order-placement software and OnStar system for satellite-generated directions to any address in the Los Angeles area. The expected result is faster, friendlier service to customers, and more income for PizzaRush. Each system costs $4,600, has a 5-year useful life, and may be salvaged for an estimated $300. Total operating cost for all systems is $650 for the first year, increasing by $50 per year thereafter. The owner will not make any money inversion if he does not receive 10% or more in return. Perform an annual worth evaluation for the owner that answers the following questions. a. How much annual income is necessary to recover the investment (CR= ?) at the MARR of 10% per year? b. The owner conservatively estimates increased income of $1,200 per year for all five systems. It is project financially viable at the MARR? Explain the answer. Draw the cash flow diagram for this Step by Step Solution
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