Economic Perspectives in Tourism and Hospitality

Economic Perspectives in Tourism and Hospitality

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Tutorial Questions week 9: Investment in Tourism & Hospitality Readings/Ref: Tribe (Chapter 10 & 11); What is the difference between fixed capital and working capital? Give an example of each.  Consider the costs and revenues associated with starting a new restaurant in rented premises. Make a list of each.   Using the payback method, work out how long it would take to repay an investment of $1.5 million dollars. Assume that ongoing costs are $50,000 per year and revenues are $300,000 per year.

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