Celina is considering opening a mezcal and tequila bar in Laredo after the coronavirus pandemic subsides. She knows that about 2 million is collected in mixed beverage alcohol per year in Webb county (at a rate of 67% of the gross sale), and she believes her bar could get about 11% of the liquor sales in the county Her vanable controly to be 33% other sales She plans to hire 2 ultime bartenders at $16/hour (assume 2000 working hours per year), and a bar manager with a salary of S75.000/year plus 7 of revenus Finally, she expects $50,000 year in miscellaneous expenses Calina needs 5200,000 to buy the land in the location she wants, and $210,000 to build the bar and purchase equipment furniture, etc. She will use straight line depreciation over a 15-year period She faces a tax rate of 23% She will need to hold an additional $25,000 in net working capital from the start of the project which will be trued at the end. Assume the bar will close after 15 years In order to finance the new store she will borrow $255,000 from a local bank, which will be paid off over fifteen years with equal monthly payments of $2,300 00. The rest of her initial capdal requirements will come from her savings She estimates that her equity will be 325 times as risky as investing in publicly traded stocks which have an expected return of 10 55%. The risk tree rules assumed to be 2.156 Enter your answers below numbers should be rounded to two (2) decimal places 11 The operating cash flow in thousands of dollars) for the project 2) The discount rate you used 3) The value of the project in thousands of dollars) 4) Yes' or 'No' depending on whether the project is worth pursuing Celina is considering opening a mezcal and tequila bar in Laredo after the coronavirus pandemic subsides. She knows that about 2 million is collected in mixed beverage alcohol per year in Webb county (at a rate of 67% of the gross sale), and she believes her bar could get about 11% of the liquor sales in the county Her vanable controly to be 33% other sales She plans to hire 2 ultime bartenders at $16/hour (assume 2000 working hours per year), and a bar manager with a salary of S75.000/year plus 7 of revenus Finally, she expects $50,000 year in miscellaneous expenses Calina needs 5200,000 to buy the land in the location she wants, and $210,000 to build the bar and purchase equipment furniture, etc. She will use straight line depreciation over a 15-year period She faces a tax rate of 23% She will need to hold an additional $25,000 in net working capital from the start of the project which will be trued at the end. Assume the bar will close after 15 years In order to finance the new store she will borrow $255,000 from a local bank, which will be paid off over fifteen years with equal monthly payments of $2,300 00. The rest of her initial capdal requirements will come from her savings She estimates that her equity will be 325 times as risky as investing in publicly traded stocks which have an expected return of 10 55%. The risk tree rules assumed to be 2.156 Enter your answers below numbers should be rounded to two (2) decimal places 11 The operating cash flow in thousands of dollars) for the project 2) The discount rate you used 3) The value of the project in thousands of dollars) 4) Yes' or 'No' depending on whether the project is worth pursuing
