A man is considering P500,000 to open a semi-automatic auto washing business in a city of 400,000 population. The equipment can wash on the average of 12 cars per hour., using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself and operate the station on an 8 hour basis, 6 days/week, 50weeks/year. He will pay his employees P25 per hour. He expects to charge P25.00 for a car wah out of pocket miscellaneous cost would be P8500/month. He would pay his employees for 2 weeks for vacation each year. Because of the length of his lease, he must write off his investment with 5 years. His capital now is earning 15% and he is employed at a steady job that pays P25,000/month. he desires a rate of return of at least 20% on his investment. Would you recommend the investment? Use the Future Worth Method

2) Your firm (a shampoo maker) has decided to enter a new industry: Doughnuts. Bubbles Doughnuts will compete with Dunkin Donuts and Krispy Kreme. You will try to exploit your current customer base, women who like to pamper themselves and secretly eat a lot of doughnuts. There will be 25 locations. The combined land and construction cost for all 25 sites will be $20million. Construction will be completed in one year. The land is approximately one quarter of the cost and cannot be depreciated. The remaining fixed costs will be depreciated 20 year, straight line. After twenty years of operation, you will exit the business. You anticipate the doughnut shops to have no salvage value but the land can be sold for $7m (net, so after all relevant taxes have been paid). When you open for business after construction is complete, each shop is expected to average sales of $2m/yr. and have operating costs of $1.8m/yr. over its twenty-year life (both of these are end of year figures). The entire…

A nonprofit decides to provide free food for the homeless in Thanksgiving holidays. The manager wants to write a proposal to raise money from their donors. Assume that the project requires a fixed cost of $5,000 for staff and equipment. The variable cost such as utensils and food is $5 per person served. Based on the manager's experience, the manager estimates there will be 200 homeless people to serve. What is the price per person that the manager should put into his/her proposal? a.$5 b.$30 c.$25 d.$5,000

Please give a detailed solution to this problem. Do not use any software and just solve manually. Thank you.

The Elberta Fruit Farm of Ontario is considering buying a cherry-picking machine to replace the part-time workers it usually hires to harvest its annual cherry crop. The machine shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. The company gathered the following information: The farm pays part-time workers $200,000 per year to pick the cherries. The cherry picker would cost $540,000, have a 8-year useful life with no salvage value, and be depreciated using the straight-line method. The cherry picker’s annual out-of-pocket costs would be cost of an operator and an assistant, $85,000; insurance, $4,000; fuel, $12,000; and a maintenance contract, $15,000. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate the annual savings in cash operating costs provided by the cherry picker. 2a. Compute the cherry picker’s simple rate of return. 2b. Would…

Please answer the 2 questions below

SOLVE THE FOLLOWING PROBLEMS: 1. A civil engineer has 2 alternative designs for a house. Both designs involve the acquisition of a work force that will be provided by the owner and other capital equipment to be used for this construction only. a. Design 1 calls for a workforce consisting of 5 men each costing P500/day. This design will be finished in 4 months. b. Design 2 calls for a workforce consisting of 10 men each costing P350/day and is expected to be finished in 3 months. In addition, there will be a project engineer who will supervise the work and will be paid P1200/day. His supervision will be required during the entire construction period. Disregarding material cost, how much is the total salary expenses for Design 1 and for Design 2. Assume that there are 24 working days in a month.

Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 6,000 log-splitting machines per year at a retail price of $700 each. An independent catalog company would handle sales for an annual fee of $2,000 plus $50 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $80 per unit. If company management desires a return equal to 10 percent of the final selling price, what is the target conversion and administrative cost per unit? Round answer to the nearest cent.

The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return.   Machine A   Machine B   Machine C   Estimated average income $43,866.76    $73,406.10    $62,231.25    Average investment 313,334.00    244,687.00    414,875.00

Hello question is attached. Thanks