The formula to calculate Laundromat Value (LV) is:
\[ LV = (YR - YC) \times 2.5 \]
Where:
The laundromat value is the estimated worth of a laundromat based on its yearly revenue and costs. This calculation is important for owners, buyers, and investors to determine a fair market value for the business.
Let's assume the following values:
Using the formula to calculate Laundromat Value (LV):
\[ LV = (100,000 - 40,000) \times 2.5 = 60,000 \times 2.5 = 150,000 \]
The Laundromat Value is $150,000.