The initial cost needed to set up your freelancing engineering design service is $50,000. The salvage value of the equipment you purchased is $2,500 after five years. You estimated that each hour of design would cost you $75 per day. If you offered your services online with a price of $310 per day, how many days per year must you work to break even if the interest rate is 10% per year?
The initial cost needed to set up your freelancing engineering design service is $50,000. The salvage value of the equipment you purchased is $2,500 after five years. You estimated that each hour of design would cost you $75 per day. If you offered your services online with a price of $310 per day, how many days per year must you work to break even if the interest rate is 10% per year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The initial cost needed to set up your freelancing engineering design service is $50,000. The salvage value of the equipment you purchased is $2,500 after five years. You estimated that each hour of design would cost you $75 per day. If you offered your services online with a price of $310 per day, how many days per year must you work to break even if the interest rate is 10% per year?
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