1. A restaurant wants to expands its dining capacity. The building they want to acquire cost P400,000 and estimated a renovation cost of P180,000. The building will have an estimated salvage value of P120,000 at the end of 8 years. The new average annual income will be P450,000 with annual expenses worth P110,000. If the they require a minimum return of 12% from the expansion, will the investment be worth it?

Answer rating: 100% (QA)

Answer To determine if the investment in expanding the restaurants dining capacity is worth it we ca... View the full answer