Reference no: EM133125745

A man is Considering investing P 500,000 to open a semi~automatic autowwashing business in a city of 400,000 population. The equipment can wash, an average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and Operate the station on an Swhour basis, 5 days per year. He will pay his employees P15.00 per hour. He expects to charge P 22.00 for a car wash. Out~of~p0cket miscellaneous cost would be p 8,500.00 per month. He would pay his employees for 2 weeks for vacation each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now earning 15%, and he is employed at a steadyjob that pays P 20,000.00 per month. He desires a rate of return at least 20% of his investment.