Answer using excel spreadsheet, with formulas visible
Please submit one Excel fite for this project. h this file you may create multiple tabs for different models. Make your model flexible, easy to update, and organized: While attendine college, you want to use your free time to start a new business. Your frat idea is to open a bakery shop selling Bundt cakes. Before you decide to execute this idea, you would like to do a capital budgeting analysis to see if this is a profitable business. Here are your main assumptions - You will kecp the bakery open for 8 vear. - To start up. you have to invest $180,000 for your foued assets. - Revenue in fiest year is $150,000, and should grow by 3% per year. - Rent of the storefront costs 527,000 per year, and should grow by 2% per year. - COGS ifood supplies kitchen equipenent, silvers, etcl cost \$25,000 per vear. - Employee sataries cost $40.000 per year. - Utilities cost 55,000 per year. - You will depreciate your foxed assets using a straight -line depreciation method. Assuming all your fixed ansets have a usable life of 10 years and a salvage value totaling Sa,000. - After B years in business, you plan to lowe the huviness and sell your foved assets based on its salvage value - Income tax rate is 3006 . - Capital gains tax rate is 15%. (1) if you require at lesst 10% return, whats NPV and IRR of this investment? (2) Create a NPV protile. (3) Do a senuthity analysis using 2 -input data table. Show NPV as a result of 2 variables that you choose. (4) Do a scenario anslysh that includes at least 2 different scenarios and repert the summary results for both NPV and ipR. You can decide the input variables (at least 3 ) and values. (5) The $180,000 start-up fund is not essy to raise. But luckly you think you can get a loan from the bank after your parents agree to use theic home equity as a collateral. You will be able to get the full $180,000 loan amount. The laan will be amortized monthly over 10 wears. in other words, the bank requires monthly payment, and the term of the loan is 10 yoars. foc the firs 5 vears, then after these 5 years, the fred monthly pavment increases by 2.5% starting in year 6 and will remuin the same for the rest of the loan ile. Build a loan amortization table showing the monthly amortization schedule