The Owner of the Pizza Parlor You Are Working for Has

question 44

Essay

The owner of the pizza parlor you are working for has asked for your help. He is trying to decide whether to buy an ice cream machine. The cost of the machine is $45,000. The revenue generated by the machine is expected to be $19,600 and the costs will be $14,200. The owner has no more information available. Ignoring taxes, calculate the unadjusted rate of return to help him make his decision.

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Definitions:

Value Proposition

A statement that summarizes why a consumer should buy a product or use a service, highlighting the unique value it provides.

Resonating-focus CVP

A customer value proposition that strongly aligns with and appeals to the customers' needs and expectations, creating a significant impact.

Financial Viability

The ability of a business or project to sustain its operations and make a profit over time.

MOOCs

Massive Open Online Courses that offer free or low-cost educational content accessible to anyone with an internet connection.