Your brother, a new college graduate, wants to behis own

Chapter 6, Problem 6.16

(choose chapter or problem)

Your brother, a new college graduate, wants to behis own boss. He wants to open a restaurant in asmall strip center or acquire and operate a food truck, an increasingly popular mode of eating, especiallyin larger cities. The restaurant space canbe rented for $2200 per month. Modest furnishingsand used equipment will have a first cost of$26,000. Income is expected to be $14,100 permonth, with expenses for utilities, labor, taxes, etc.expected to average $3700 per month. Alternatively,a kitchen-ready food truck will cost $17,900to purchase and $900 per month to operate. Incomeis expected to be $6200 per month. If thesalvage values are assumed to be 10% of the firstcost for the restaurant and 35% of the first cost ofthe truck after a 5-year planning period, which alternativeis better on the basis of an annual worthcomparison at an interest rate of 12% per year,compounded monthly? Also, write the spreadsheetfunctions to find the AW values.

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