Net present value?!?!?
IHOP Corporation franchises breakfast-oriented restaurants throughout North Amer¬ica. The average development costs for a new restaurant were reported by IHOP as follows:
Land7,000
Building800,000
Equipment341,000
Site improvements185,000
Total,993,000
IHOP develops the restaurant properties. IHOP indicates that the franchisee pays an initial franchise fee of 0,000 for a newly developed restaurant. IHOP also re¬ceives revenues from the franchisee as follows: (1) a royalty equal to 4.5% of the restaurant’s sales; (2) income from the leasing of the restaurant and related equip¬ment; and (3) revenue from the sale of certain proprietary products, primarily pan¬cake mixes.
IHOP reported that franchise operators earned annual revenues averaging ,500,000 per restaurant. Assume that the net cash flows received by IHOP for lease payments and sale of proprietary products (items 2 and 3 above) average 5,000 per year per restaurant, for ten years. Assume further that the franchise operator can purchase the property for 0,000 at the end of the lease term.
Determine IHOP’s net present value for a new restaurant, assuming a 10-year life, no change in annual revenues, and a 10% desired rate of return.
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Leasing vs purchasing baking equipment?
I’m starting a small bakery and I’m wondering if leasing or purchasing would be my best option. I’d like to lease in case the business goes belly up I think.
Anyone have any good links (they’ve personally had experience with) for leasing bakery equipment such as a convection oven, display case, refrigerator and a mixer?
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Questions to ask before purchasing an existing sports bar/restaurant?
I am currently reviewing an option to buy an existing sports bar/restaurant? What are some questions outside of the obvious to consider when I meet with the owners?
I am aware of questions about payroll, cost of good sold, liquor license, maintenance contracts, equipment, and leasing arrangement? Are there any other imperative questions that one should consider being new to this industry?
Thank you!
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Business personal property tax for leased business equipment and software?
Who is obligated to pay business personal property tax if we leased the equipment, us or leasing co.? How about computer software? Is software treated same way as other business equipment (copier, computer etc), or it has different rules in terms of business property tax.
Thanks in advance
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I had a small restaurant, and on 2006 i subleased these business?
my leasing ended on march/2008 i never had any problem with the people who was running the restaurant but, they decided to do the same thing after 6 months and they sold the business on feb/2007, they ask me if they would do this and I say ok but they should still paying me the rent cause I had the commitment with the landlord and I was responsible to pay the rents so they always paid me until my leasing finished, But my guarantee was the restaurant equipment. The "new owners went into a new leasing for 5 years and it supposed they should pay me the property taxes for the furniture and equipment of 2008. But when I was paying my property taxes online I decided to check if this account correspondent to the business still under my name, unfortunateley it is and not only that, these people never paid the taxes so I did it and now they don’t want to pay me that money. What can I do if I never signed anything with them. The people who did the agreement were my buyers and now they are trying to collect this money for me but he second tenants just moved out from hte space in the middle of the night and they took out all the furniture and equipment. I have found them but it supposed that my buyers must go and ask them to pay me the money since they were the ones who sold the business and they signed the contract with this people.
What can I do?
Thank you for any help
By the way I live in San Antonio Texas.
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Are lease payments for computer equipment tax deductible?
i have an assignment about leasing, so this is just a general question. The lease is used for business purposes, at a fixed rate.
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