A's restaurant is failing so she applies for B's show Kitchen Nightmares. B comes to help and the show invests $750,000 during filming to save A's business. In order to maintain their success, A must continue to support with $51,000 in marketing funds for the following 3 years. However, the restaurant sees great success following the show and profits $100,000 increasing by 4% every year. What is the payback period for the investments in A's restaurant? What is the payback period if A has to pay the shows investors 9% on their investment

Answer rating: 100% (QA)

Heres how to calculate the payback period for As restaurant with and without the profitsharing agreement Scenario 1 No profitsharing with the shows in... View the full answer