Miner's Mexican Grill Inc. plans to open its 100th restaurant by the end of next year. The new restaurant will require an initial investment of $300.000 and an annual operating cost of $30.000. It will have a $60.000 salvage value after 6 years. The company also estimates that the new restaurant will bring in revenue of $45.000 each year. Determine the acceptability of the investment if the company's minimum attractive rate of return is 12% per year using annual worth analysis.

Answer rating: 100% (QA)

The companys minimum attractive rate of return is 12 per year The initial investment for the ne... View the full answer