Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay =  $6,947 x 0.42340 - $2,182 = $759.39 What's the equation for the bolded item?

David  is a detective in the Atlanta Police Department earning $75,000 per year.  He is also an avid cook and people rave about his cooking. David  hears of an opportunity to buy an existing restaurant  .  He needs to take $100,000 out of his brokerage truck to buy the restaurant.  The $100,000 averaged a return of 10% over the last few years.   Based on the recent history of the restaurant, he expects annual  revenues of $400,000.   He expects to spend $140,000 on food, $75,000 on employee expense, $50,000 on rent , and $25,000 for utilities each year. David is trying to decide whether to quit his job as a detective and buy the restaurant. Assuming that David is indifferent between being a detective and owning the restaurant, should David quit his job as a detective and buy the restaurant? Explain why or why not. David’s significant other reminds him that he LOVES being a detective and that he will miss being a detective if he decides to go into the restaurant business.  After…

You are considering getting a Little Nero Caesar Salad Franchise, because your boss (the owner of a Down Under Sandwich Shoppe) seems to be making it big.  The Down Under Shoppe grosses an average of $380,000 sales annually.  You estimate that your business will gross an average of 95% of Down Under’s sales.  You must borrow $320,000 from the bank.  The bank will charge you 12% per annum interest on this loan.  You also will invest $50,000 of your savings in the business (thus you will no longer receive the 4% per annum interest from this). NOTE: neither the bank loan principal nor the $50,000 of your savings you invest is an explicit or implicit cost.  However, the interest paid on the bank loan is explicit and the interest foregone on your savings is implicit.  Other estimated explicit expenses are: labor $130,000 per year; rent $12,000 a year; utilities $4,000 a year; and salad ingredients $140,000 a year.  An explicit expense you will have to pay Little Nero, Inc., is a franchise…

just c thanks