Will the investment be worth it

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Question - Topic: Investment of Capital - A restaurant wants to expands its dining capacity. The building they want to acquire cost P400,000 and estimated a renovation cost of P180,000. The building will have an estimated salvage value of P120,000 at the end of 8 years. The new average annual income will be P450,000 with annual expenses worth P110,000. If the they require a minimum return of 12% from the expansion, will the investment be worth it?

Reference no: EM132947066

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