Question
The owner of a convenience store is considering adding a take-out sandwich section to her offerings. The new activity will occupy 25% of the space
The owner of a convenience store is considering adding a take-out sandwich section to her offerings. The new activity will occupy 25% of the space currently being rented out to a milk tea stall for P28,000 per month. The milk tea stall owner agreed to rent the remaining 75% of the space for P19,300. How much opportunity cost should be included in estimating the cash flow of the take-out sandwich section? Indicate negative sign if cash outflow.
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
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