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Ray Of Light [21]
2 years ago
12

Dorothy decides that she would like to open and operate a day care facility in her neighborhood. As a result of questions and su

rveys, she determines a day care center is just what her town should have. She and her husband figure what it will cost to start and keep the center going. She then decides on activities, and finds and trains several assistants. What important step has Dorothy overlooked?
A. Determining and complying with licensing requirements
B. Developing a program
C. Determining and meeting start-up and maintenance costs
D. Determining the need for a center
Business
1 answer:
dsp732 years ago
3 0
Dorothy decides that she would like to open and operate a day care facility in her neighborhood. As a result of questions and surveys, she determines a day care center is just what her town should have. She and her husband figure what it will cost to start and keep the center going. She then decides on activities, and finds and trains several assistants. What important step has Dorothy overlooked?


D. Determining the need for a center
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Answer:

Question 1:

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initial outlay = cash flows

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<u>so we have to select C = $162,515.75 that results in an NPV = $10,887. </u>

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<u>The correct answer is D. return on equity will increase.</u>

If you lower your costs while your sales remain the same, your profits will increase as well as your ROE.  

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