14. Calvin Wu owns a Chinese food restaurant in Taylor, MI, and is trying to decide bet expanding his current location a

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14 Calvin Wu Owns A Chinese Food Restaurant In Taylor Mi And Is Trying To Decide Bet Expanding His Current Location A 1 (21.69 KiB) Viewed 33 times

14. Calvin Wu owns a Chinese food restaurant in Taylor, MI, and is trying to decide bet expanding his current location and purchasing another, existing restaurant nearby. Th predicted costs and benefits of each acquisition are reproduced below (Calvin's dise is 12%): Up-front Costs $ $ Working Capital Required Yearly Depreciation S Acquisition Value at End of 8 years $ Annual Net Cash Inflows S What is the payback period for each option? What is the Net Present Value of each option? Expansion What is each option's simple rate of return? What is the Project Profitability Index of each option? 16 Purchase 160,000 $ 5,000 S 20,000 $ 200,000 $ 50,000 $ 240,000 20,000 30,000 250,000 75,000