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Transcription of this question: 2.Daytona Go-CartsIn 2020, Ron James aims to open Daytona Go-Cans,a race track where individuals as young as twelve canrent go-carts and participate in races. Through primarymarket research, Ron has discovered that manyteenagers would enjoy participating in go-cart races.Ron has two options for locations for the go-cartrace track:Option 1: The cost of the site would be $1.2 millionOption 2: The cost of the site would be $1.8 million.Forecasted profits for Option 1 are:Year 4[Source: https://wn.w•.pexels.comlYear 5Year 1$200 000Year 2$300 000Year 3$300 000 $300 000 $300 000Forecasted profits for Option 2 are $300000 in the first year, with profits growing by 20% peryear for the next four years.(a)(b)(c)(d)State two methods of primary market research.Calculate, for Option 1:(i) the average rate of return (ARR) (show all your working);(ii) the payback period (show all your working).Calculate, for Option 2, the average rate of return (ARR) (show all your working).Explain one reason why Option 1 may be a less risky investment than Option 2.[2][2][2][2][2]

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