Page 1 of 1
An investment of P270,000 is needed for a Korean Mart that will produce a uniform annual revenue. This Korean Mart is op
Posted: Thu Apr 28, 2022 8:39 pm
by answerhappygod
- An Investment Of P270 000 Is Needed For A Korean Mart That Will Produce A Uniform Annual Revenue This Korean Mart Is Op 1 (31.18 KiB) Viewed 28 times
An investment of P270,000 is needed for a Korean Mart that will produce a uniform annual revenue. This Korean Mart is operating daily (assuming 30 days a month) for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P80,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Using RoR method, how much should be their minimum daily revenue for this investment to be desirable(break-even)?