Question: Lost Dogs is trying to determine whether they should build kennels to provide boarding services to customers to cross subsidise their dog rescue service. They
Lost Dogs is trying to determine whether they should build kennels to provide boarding services to customers to cross subsidise their dog rescue service. They have performed the calculations and found the following:
Method Result Accounting Rate of Return 3.89%
Payback Period 5-6 years
Net Present Value $36,987 positive
Review the results individually and determine whether you can individually accept the proposed project for each method.
. Draw an overall conclusion as to whether, based on the 3 methods, you would recommend the project.
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