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12. For future capital investment decisions, which capital budgeting model discussed in Moduie 25 wouid you recommend to Jay? Why? [min 200 w} Business Bescnption

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12. For future capital investment decisions, which capital budgeting model discussed in Moduie 25 wouid you recommend to Jay? Why? [min 200 w} Business Bescnption A friend, Jay Green, recently opened a drive through coffee and donut shop. day has asked you for help with formulating the projected numbers for the business and hetp analyze if the company will be successful. Using the skitls you have developed in ACCT 551 Accounting for Managers, you will analyze the business to provide a forecast and recommendations for the business venture. Jay opened the business on January 1, 2tltl| and has provided the nancial information for the year ended December 31, 219. Provide answers to the required items based on the information provided below and other amounts calculated. Be sure to show your calculations. Cost information: Jay purchases bis donuts wholesale from a baker for $13111] per dozen. The cost per cup of coffee including the cup, creamer, and sugar is on average 4t] cents per cup. Jay has rented a location on Main Street near downtown that is rented for $3 per month. Utilities average $31 per month. Fixtures for the business were purchased for $E,DDD {depreciation will be $BDD per year for it} years} Jay is open 6 days per week (Monday through Saturday} from AM until 1111} PM. The store is operated by one emptoyee at a time. The emptoyees are paid $113.51] per hour. Business insurance has been obtained at a cost of $T5 per year. Jay plans on spending $51312} per month for advertising. The nancial statements prepared by Jay for the year ended December 31, Et Q are attached

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