Question
Answer should be on Excel spreadsheet This is a Fast Food outlet that would expect 1,060 customers per day. The establishment would be open 365
Answer should be on Excel spreadsheet
This is a Fast Food outlet that would expect
1,060 customers per day. The establishment would be open 365 days a year serving from 6am till 11pm. The land would cost $300,000. The building would be valued at $4,000,000 depreciated over 20 years and $500,000 for assets that would have to be upgraded after every six years at the cost of $600,000 each time. Operating Expenses per year are estimated to be $1,500,000. The pricing structure will generate a contribution margin per customer $5.
1. Analyze the data and using Net Present Value, Profitability Index, Internal Rate of Return (use Excels PV and IRR functions), and the Payback Method. Use a discount rate of 4% and a 33% tax rate.
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