Jo quick is managing director to the tot lot day care

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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

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