Calculate the annual revenue - capital budgeting analysis, Financial Management

The Donut Shop, Inc. is planning to add a 2nd Donut Shop by opening a new store across from Webster University. A survey of the area has already been completed at a cost of $150,000. Annual revenues are expected to be $5 million. However, opening the new shop will cause annual revenues at the other Donut Shop located a mile from Webster's campus to drop by $2 million per year. What is the relevant annual revenue that should be used in the capital budgeting analysis of opening the new Donut Shop?

 

Posted Date: 3/2/2013 3:03:54 AM | Location : United States







Related Discussions:- Calculate the annual revenue - capital budgeting analysis, Assignment Help, Ask Question on Calculate the annual revenue - capital budgeting analysis, Get Answer, Expert's Help, Calculate the annual revenue - capital budgeting analysis Discussions

Write discussion on Calculate the annual revenue - capital budgeting analysis
Your posts are moderated
Related Questions
A company is expected to pay a dividend of D1 = $1.25 per share at the last of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future.

Q. Example on compound value of the single flow? Mr. X invests Rs. 1000 at 10% is compounded yearly for three years. Compute value after three years. FV = PV (1+i) n FV

You've just won a huge $100 million lottery.  You've decided to invest your winnings in the following way:  $30 million in real estate,  $30 million in  corporate bonds and $40 mil

Illustrate the meaning of Gearing Gearing is the relationship between equity anddebt. Debt is typically long term liabilities that the organisation has. Equity is all the shar

Briefly describe the major differences between a sole proprietorship and a corporation. Under which form would you choose for a business, and why? Describe the meaning of financi

Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr

Sole Proprietorship This business form is the legal default form for any person who makes no effort to organize the business otherwise but does business in the United States. T

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

What is the most conservative type of working capital financing plan a company could implement?  Explain. An all equity capital structure would be mainly conservative type of wor

Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI