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3. You are planning to open a small restaurant on Fowler Ave. featuring authentic Cuban food. You would like to do a capital budgeting analysis

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3. You are planning to open a small restaurant on Fowler Ave. featuring authentic Cuban food. You would like to do a capital budgeting analysis to determine if this is a good business opportunity. Here are your main projections of this restaurant, assuming you will run the restaurant for 10 years: o To start up, you have to spend $200,000, which includes market survey, buying all the equipment and supplies, marketing, etc. Revenue in first year is $200,000, and should grow by 2% per year. Rent of the storefront costs $36,000 per year, and should grow by 1% per year. o Employee salaries cost $80,000 per year. o Utilities cost $5,000 per year. COGS (food supplies, kitchen equipment, silvers, etc) cost $90,000 per year. . Tax rate is 30%. (1) If you require at least 9% return, what's NPV and IRR of this investment? (2) Create a NPV profile. (3) Do a sensitivity analysis using 2-input data table (Startup fund, and COGS as input variables, NPV as output variable). You can decide the input ranges. (4) Do a scenario analysis (Best case and worst case) and report the summary results for NPV and IRR. You can decide the input variables (at least 3) and values

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