Question: Question 2 (30 points) A machine to sell ice-cream is available in the market for $ 20000. You could sell ice creams for $3 per

 Question 2 (30 points) A machine to sell ice-cream is available
in the market for $ 20000. You could sell ice creams for

Question 2 (30 points) A machine to sell ice-cream is available in the market for $ 20000. You could sell ice creams for $3 per cone, and you estimate to be able to sell 53 , cones per day if renting a place in the local mall. You can operate only 319 days per year after considering vacations and holidays. The monthly renting fee in the local mall is $1700 and you can hire 2 employees to take care of the ice cream stand, each with a monthly salary of $900. Material and other costs are $15000 per year. If your MARR is 20% and you are planning to retire in 10 years, answer the following questions: a) Write the equation to evaluate this project when using Present Worth Method a) Write the equation to evaluate this project when using Present Worth Method b) What is the present worth of this project? Instructions: Use 4 digits in your calculations and reporting the answers. Do not write commas or apostrophes. Do not write $ (dollar sign) or any other symbol, just write the number. PW = $ c) Is this a good investment or not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!