BREAKEVEN Mak Cik Kiah is considering two alternatives for expanding her business; buying a small restaurant and renting
Posted: Wed Jul 06, 2022 6:20 am
BREAKEVEN Mak Cik Kiah is considering two alternatives for expanding her business; buying a small restaurant and renting a small restaurant. The small restaurant has an initial cost of RM80,000. Daily operating cost is expected to be RM100. The alternative of renting a small restaurant has a rental cost of RM150 per day. At 15% per year worth of money, how many days per year must the restaurant be in use if Alternative A is to be chosen. Take analysis period of 10 years.