![itzdulce](/avatars/42277.jpg)
itzdulce
30.03.2020 •
Mathematics
] Monica Geller, head chef at Allesandro's and is looking to update the commercial equipment in her kitchen and bar that will allow them to serve 15 more people per day increase average menu order by $5. Allesandro’s currently serves 230 people per day with an average menu order of $16 per person. Monica also estimated spending $56,000 in added utility and maintenance cost every year. The expected salvage value of the upgrade at the end of 4 years is about 10% of the initial purchase. To expect a 15% required rate of return on investment, what would be the maximum amount that should be spent on the upgrade.
Solved
Show answers
More tips
- F Family and Home How to Build a Strong Relationship with Your Child: Tips for Effective Communication...
- H Health and Medicine Boosting Immunity: A Complete Guide on How to Improve Your Body’s Natural Defenses...
- C Computers and Internet The Best Antivirus Programs for your PC...
- S Style and Beauty How to Get Rid of Acne: Scientifically Proven Methods...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
Answers on questions: Mathematics
- M Mathematics In the figure above, the circle with center O is inscribed in square ABC Line segment AO intersects the circle at P. What is the length of AP?...
- M Mathematics the marked price of a radio is Rs 960 and the shopkeeper allows 10percent discount calculate the discount amount how much should a customer pay for it...
- M Mathematics Club famous.com customer care number 9832336299//9832336299 club famous.com customer care number 9832336299//9832336299club famous.com customer care number 9832336299//9832336299...
- M Mathematics The relationship between altitude and the boiling point of a water and liquid is in the new year at an altitude of 8000 feet the liquid boils at 204.4 degrees Fahrenheit...
- M Mathematics Some of yall really be spamming me, lol love it. Merry Christmas yall❤....
- M Mathematics 000000000000000000000000000000000000007...
- M Mathematics Out of 153 students appeared in an examination the ratio of the students who got the A+ A and B+ grades is 2:4:5 and if 21 students got the other grades then, how...
- M Mathematics The number of student of schoolwas 450 last year and it is 396 this year.By how many percent did the number decrease...
- M Mathematics The product of 15 and a number x is −75....
- M Mathematics Gogirls wear customer care number 9832336299*9832336299 Gogirls wear customer care number 9832336299*9832336299 Gogirls wear customer care number 9832336299*9832336299...
Ответ:
The maximum amount that should be spent on the upgrade is $38,298,000.
Step-by-step explanation:
Let the initial purchase be x.
The ROI = 15% of x = 0.15x
At the end of 4 years, salvage value = 10% of x = 0.1x
Current income per day = $16 × 230 = $3680
Expected income per day = $21 × 245 = $5145
Increase in income per day = $5145 - $3680 = $1465
For 4 years (assuming a year is 365 days),
Increase in income = $1465 × 365 × 4 = $2138900
Maintenance and utility cost for 4 years = 4 × $56000 = $224000
At the end of 4 years,
ROI = $2138900 + salvage value = $2138900 + 0.1x - $224000
0.15x = $1914900 + 0.1x
0.05x = $1914900
x = $38298000
Ответ:
$ 1,449,682
Step-by-step explanation:
Current number of customers per day = 230 people per day
Current Average menu order = $ 16 per person
Current daily revenue = 230*16 = $ 3,680
Added utility and maintenance cost per year = $ 56,000
Expected salvage value of the upgrade at the end of 4 years = 10% of the initial purchase
Required rate of return on investment = 15%
Incremental customers = 15
Incremental average menu order = $ 5
New average menu order = 16+5 = $ 21
New number of customers per day = 230+15 = 245
New revenue per day = 245*21 = $ 5,145
Incremental revenue per day = 5145 - 3680 = $ 1,465
Incremental revenue per year = 1465*365 = $ 534,725 (considering 365 days per year)
After subtracting the added utility and maintenance cost, net incremental cash flow per year = 534725 - 56000
= $ 478,725
Present value factor for incremental cash flow over 4 years
= (1 - 1.15^-4)/0.15
= 2.855
Present value factor for salvage value after 4 years = 1.15^-4 = 0.5718
Present Value (PV) of net incremental cash flow over 4 years = 478725*2.855 = $ 1,366,760
Let x be the maximum amount that should be spent on the upgrade
Net Present Value = PV of net incremental cash flow over 4 years - initial purchase cost + Present Value of salvage value
= 1366760 - x + 0.1x*0.5718
= 1366760 - 0.9428x
To find the maximum amount to be spent on upgrade, NPV should be equated to 0
1366760 - 0.9428x = 0
x = 1366760/0.9428
= $ 1,449,682
Therefore, maximum amount to be spent on the upgrade = $ 1,449,682
Ответ:
Soh - Cah - Toa
opposite
sin =
hypotenuse
adjacent
cos =
hypotenuse
opposite
tan =
adjacent
In your case, you can set up a sine trigonomic function, like this:
Sin 48 = 10 (adjacent)
x (hypotenuse)
10
(x) Sin 48 = (x)
x
(x) Sin 48 = 10
Sin 48 Sin 48
Plug in 10(sin)(48) into a calculator.
x = 7.43
I just realized that you didn't ask me to find the answer, but now you will know even more than you need to :D