A commercial fitness and gym equipment's company is considering setting up a gym with a land...
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A commercial fitness and gym equipment's company is considering setting up a gym with a land that can be purchased for BD400,000. Construction cost for the gym equipment's and the decoration is planned to be BD250,000 and the additional annual maintenance costs for the gym are projected to be BD100,000. The one year package is BD200/person and it's predicted to have 1,000 trainers each year with 30% of them going to have a massage once a month for BD15. Table method required /(Strength line) a. Payback period b. Profitability index c. Internal Rate of Return d. Break-even Analysis (if applicable) e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only) A commercial fitness and gym equipment's company is considering setting up a gym with a land that can be purchased for BD400,000. Construction cost for the gym equipment's and the decoration is planned to be BD250,000 and the additional annual maintenance costs for the gym are projected to be BD100,000. The one year package is BD200/person and it's predicted to have 1,000 trainers each year with 30% of them going to have a massage once a month for BD15. Table method required /(Strength line) a. Payback period b. Profitability index c. Internal Rate of Return d. Break-even Analysis (if applicable) e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only)
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A Payback Period Gym Subscription 200000 2001000 Massage servi... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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