Jo quick is managing director to the tot lot day care

Reference no: EM13576518

Jo Quick is managing director to the Tot Lot Day Care Centre..Jo Quick's trying to determine whether the centre should expand its facilities to incorporate a newborn care room for infants between the age of 6 weeks and 12 months Tot Lot is currently set up as a full-time care years
facility for children between the age of 12 months 6
The necessary space already exist. An investment of $20,000.00 would be needed, to purchase cribs, high chairs, etc. equipment will have a 5yrs usefu life with zero salvage value

Each parent will be charged $125.00 weekly
- Operating Exp. Will be 52 weeks of the year
- Payroll $60,000
- Misc 6,000.00 annually

Determine annual net income, net annual cash flows for new nursery
Compute the cash payback period for new nursery, the annual rate of return
Compute the net present value of newborn care room
Conclude from theses computation what Jo Quick do?

Reference no: EM13576518

Questions Cloud

The corporate tax rate is 35 percent what is the decrease : dream inc. has debt outstanding with a face value of 5 million. the value of the firm if it were entirely financed by

Calculate the gross margin per unit of the standard : calculate the gross margin per unit of the standard product under the current cost system.for this question only assume

Prepare all necessary journal entries for the year 2014 if : ajax company appropriately accounts for certain sales using the installment sales method. the perpetual inventory

Johnson manufacturing produces metal picture frames the : johnson manufacturing produces metal picture frames. the companys external income statements for the last two years are

Jo quick is managing director to the tot lot day care : jo quick is managing director to the tot lot day care centre..jo quicks trying to determine whether the centre should

For each of the following transactions for new idea : for each of the following transactions for new idea corporation give the accounting equation effects of the adjustments

Nance co receives 280000 when it issues a 280000 6 mortgage : nance co. receives 280000 when it issues a 280000 6 mortgage note payable to finance the construction of a building at

Frizell company is preparing its manufacturing overhead : frizell company is preparing its manufacturing overhead budget for 2011. relevant data consist of the following.middot

Ccomp inc entered into the transactions listed below : ccomp inc. entered into the transactions listed below. prepare ccomps entries assuming use of the perpetual inventory

User Account

All Pages