A commercial fitness and gym equipment's company is considering setting up a gym with a land...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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)
Expert Answer:
Answer rating: 100% (QA)
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:
Students also viewed these accounting questions
-
A new machine can be purchased for $1,000,000. It will cost $65,000 to ship and $35,000 to modify the machine. A $30,000 recently completed feasibility study indicated that the firm can employ an...
-
Suppose 247 subjects are treated with a drug that is used to treat pain and 55 of them developed nausea. Use a 0.05 significance level to test the claim that more than 20% of users develop nausea....
-
A warehouse can be purchased for $90 000. After 20 years the property will have a residual value of $30 000. Alternatively, the warehouse can be leased for 20 years at an annual rent of $10 000...
-
At times we can generate a regression equation to explain outcomes. For example, an employees salary can often be explained by their pay grade, appraisal rating, education level, etc. What variables...
-
The business's dividend decision is really a by-product of its capital investment decision. Discuss.
-
Godfreid Company has accounts receivable of $95,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to...
-
Explain the ownership of and who can access a patients medical record.
-
A rural clinic hires its staff from nearby cities and towns on a part-time basis. The clinic attempts to have a general practitioner (GP), a nurse, and an internist on duty during at least a portion...
-
Journalize the following transactions for the A to Z Pool Supply, assuming the "net" method is used. Explanations are not required. a. Sold $64,000 of merchandise to Sonny's Spas, Inc., on account,...
-
Here we consider a random variable G whose probability density function (PDF) depends on a parameter, call it H. We start by modeling this problem under the assumption that H is random with a given...
-
From its nineteenth-century roots as a British bicycle company, Raleigh Wheels has developed a worldwide reputation for marketing sturdy, comfortable, steel-frame bicycles. The firm, named for the...
-
What policies would you institute in your Hawaii law firm based on the Blair v. Ing decision? Blair v. Ing (2001) In this case, plaintiffs-appellants Leslie Blair and Laura Bishop (Plaintiffs) sued...
-
Brooklyn Borough Hospital is examining its inpatient services to determine the year-to-year change in revenue. After examining the chart below, please answer the questions listed. 2022 Revenue...
-
Companies that are subject to legal sanctions and their management teams will be labeled as having a negative reputation. Public issues can enter the realm of law and have an impact on company...
-
You are an insurance agent (with ABC Insurance Brokers Ltd) who has a client (Mrs. Janice Jones) that will be visiting your office today to discuss her buying a new homeowner insurance policy. She...
-
SOURCES: 1. The Cook v. City of Du Quoin, 256 Ill. App. 452 (Ill. App. Ct. 1930) case that appears below. 2. The hypothetical immediately below. HYPOTHETICAL You work at a law firm, and you have been...
-
Describe the process of measuring risks and identify multiple ways an innovating organization can implement risk management practices based on the identification of risk. Examine how technology...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
A manufacturing company has some existing semiautomatic production equipment that it is considering replacing. This equipment has a present MV of $57,000 and a BV of $27,000. It has five more years...
-
Determine the after-tax yield (i.e., IRR on the ATCF) obtained by an individual who purchases a $10,000, 10-year, 10% nominal interest rate bond. The following information is given: Interest is paid...
-
A 50 horsepower motor is required to power a large capacity blower. Two motors A and B, mutually exclusive, have been proposed. Their cost data are given in the next page: The MARR is 5% per year....
-
Bethany, who weighs 560 N, lies in a hammock suspended by ropes tied to two trees. One rope makes an angle of 45 with the ground; the other makes an angle of 30. Find the tension in each of the ropes.
-
In the Skycoaster amusement park ride, riders are suspended from a tower by a long cable. A second cable then lifts them until they reach the starting position indicated in Figure P5.3. The lifting...
-
A dump truck, whose bed is made of steel, holds an old steel watering trough. The bed of the truck is slowly raised until the trough begins to slide. What is the acceleration of the trough as it...
Study smarter with the SolutionInn App