Considering the installation of air-conditioning system

Assignment Help Financial Management
Reference no: EM132071886

A theater in Davao City is considering the installation of an air-conditioning system which is believed will increase attendance by an average of 100 persons a day. The average charge per person is ?8.00, and the theater is in operation 360 days each year. The system would cost ?600,000.00 if installed and it is estimated that the average maintenance cost would be ?12,000 per year. Based on the performance systems, the daily operation cost would be ?200 and the estimated life is 10 years. Taxes and insurance would be 3.5% of the first cost. For the depreciation, assume that money can be invested at 12% compounded annually. If the theater is now making a profit of 15% on its investment, would you recommend the installation of the system?

Reference no: EM132071886

Questions Cloud

Locate the average values of these values : Locate the average values of these values for the restaurant industry and comment on how well or poorly Franks All-American BarBeQue
Which stage of the policy model does the scenario represent : What is Policy? Explain each of them: Public policy- Private policy- Health policy- Social policy- Organizational policy?
What is your arbitrage profit per dollar used : If there is, explain how to take advantage of the mispricing and the potential arbitrage profit.What is your arbitrage profit per dollar used?
Explain your current role in nursing : Write 1 to 2 page double-spaced essay is needed that explains your current role in nursing and why you are looking to further your education towards becoming.
Considering the installation of air-conditioning system : A theater in Davao City is considering the installation of air-conditioning system which is believed will increase attendance by an average of 100 persons a day
How the actions might affect the stock price : Discuss how SSC’s stockholders might view each of actions and how the actions might affect the stock price.
In what ways could a researcher manage and organize the data : Qualitative data has been described as voluminous and sometimes overwhelming to the researcher. In what ways could a researcher manage and organize the data?
Explain the three types of qualitative research : The three types of qualitative research are phenomenological, grounded theory, and ethnographic research. What are the differences and similarities.
Common stock to finance one of proposed projects : The Unlimited Inc, would like to sell their common stock to finance one of their proposed projects.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd