Answer:
Roper Spring Water should not buy the machine, since it produces a negative net present.
Explanation:
Summary of Cash Flows on the Machine are as follows :
Year 0 = ($230,000)
Year 1 = $55,000
Year 2 = $65,000
Year 3 = $75,000
Year 4 = $75,000
Interest rate = 7%
Using the CFj Function of the Financial calculator this will be computed as :
($230,000) CF j 0
$55,000 CF j 1
$65,000 CF j 2
$75,000 CF j 3
$75,000 CF j 4
i/yr = 7%
Therefore Net Present Value is - $3,385.13
Since this is a negative Net Present Value, Roper Spring Water should not buy the machine.
Answer:
The key factors that the owner should look at are:
- Estimated budget for opening the new restaurant. The owner has to pay for each franchise restaurant, plus the equipment, furniture, and rent.
- Target market and potential demand. The restaurant current demand is very high, but will it be high if another restaurant opens.
- Location is extremely important for any business, and a restaurant is not the exception.
Answer:
C. Quasi-public goods.
Explanation:
Quasi-public goods are goods that has features of both private and public goods.
A public good is a good that is both non -excludable and non-rivaled in consumption.
A private good is the opposite of a public good.
Some features of quasi public goods are partial excludability and partial rivalry. Examples of quasi public goods are education, roads, and bridges.
I hope my answer helps you