KSubway, with more than 27,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. Thefollowing table gives the factors for each site.FactorSpaceCostsTraffic densityNeighborhood incomeZoning lawsWeight0.350.250.200.150.05Maitland6035455080Baptist Church7580807015Northside Mall8535604090Savea) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church, with a total weighted scoreof 73.5 (Enter your response rounded to two decimal places)b) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will bewith a total weighted score of (Enter your response rounded to two decimal places)

Total weighted score is a calculated value that combines individual scores assigned to different…

Answered: - Subway, with more than 27,000 outlets…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Phil’s is a sit-down restaurant that specializes in home-cooked meals. Theresa’s is a walk-in deli that specializes in speciality soups and sandwiches. Both firms are currently considering expanding their operations during the summer months by offering pre-wrapped doughnuts, sandwiches, and wraps at a local beach. Phil’s currently has a WACC of 14% while Theresa’s WACC is 10%. The expansion project has a projected net present value of £12,600 at a 10% discount rate and a net present value of -£2,080 at a 14% discount rate. Theresa’s belongs to Harvester, which has expected earnings before interest and tax (EBIT) of £45,000 in perpetuity and a tax rate of 30%. Harvester has £60,000 in outstanding debt at an interest rate of 8%. The unlevered cost of capital is 12. 1. What is the value of Harvester according to Modigliani and Miller Proposition I with taxes? 2. Should Harvester change its debt-equity ratio if the goal is to maximize the value of the firm? Why?
Lisa is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $14 for food costs per person per night. She feels she can increase the room rate to $101.00 per person per night. Determine the quantity of rentals and the sales revenue Lisa needs to break even if the changes are made. (Round answers to O decimal places, e.g. 5,275.)
Finisterra, S.A. Finisterra, S.A., located in the state of Baja California, Mexico, manufactures frozen Mexican food which enjoys a large following in the U.S. states of California and Arizona to the north. In order to be closer to its U.S. market, Finisterra is considering moving some of its manufacturing operations to southern California. Operations in California would begin in year 1 for three years and have the following attributes: E The operations in California will pay 81% of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed up dividends from foreign countries, with a credit for host-country taxes already paid. The corporate income tax rate in U.S. is 28% (the tax rate in Mexico is lower than the rate in the U.S.), the current spot exchange rate is Ps10.00/$, and the exchange rates for the next three years will be Ps11.00/S, Ps12.00/S, and Ps13.00/S, respectively. Assume the after-tax dividends received by the parent in years…
A trader wants to open an oil shop in the area with a choice of the B City, J Cityor D City. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. Area Fixed Cost Variabel Cost B City 5,500,000 55,470,000 J City 11,500,000 35,500 D City 21,500,000 15,500 How much volume must be met in order to obtain economic value per area? Determine the volume range for each area AND Sketch a crossover chart that illustrates these conditions!
Want answer with explanation. thanks
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Line Item Description Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. Question Content Area a. What is the contribution margin for a…
Solve
i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: a. How much is the annual sales volume (box) for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.
Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dalles are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase Detroit $780,000 $22radio Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above Fixed costs Variable costs. Dallas $640,000 $30/adio radios
V. S. Yogurt is considering two possible expansion plans. Proposal A involves opening 10 stores in northern California at a total cost of $3,150,000. Under another strategy, Proposal B, V. S. Yogurt would focus on southern California and open six stores for a total cost of $2,500,000. Selected data regarding the two proposals have been assembled by the controller of V. S. Yogurt as follows. All revenue and expense estimates other than depreciation will be received or paid in cash. Required investment Estimated life of store locations Estimated salvage value Estimated annual net cash flow Depreciation on equipment (straight-line basis) Estimated annual net income Instructions Proposal A $3,150,000 7 years $ -0- 750,000 450,000 ? Proposal B $2,500,000 7 years $ 400,000 570,000 300,000 ? a. For each proposal, compute the (1) payback period, (2) return on average investment, and (3) net present value, discounted at management's required rate of return of 15 percent. (Round the payback…
Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective. Owner Investment 2,000,000 Funds borrowed 3,000,000 Food cost 33% Labor cost 35% Other V.C. 10% Building 3,000,000 Furniture and Equipment 1,200,000 Management Salaries 140,000 Other Fixed Costs 200,000 Interest % 6% Depreciation on FF&E 14.29% Depreciation on Building 5% What is the break-even point in…
i need the answer quickly

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS