Create an excel model to answer the following:

1. Assume you are a financial manager for Pappys Pizza. Pappys already has 2 locations in Richmond and is considering adding a food truck. Pappy has asked you to build a financial model to analyze the project with the following assumptions:

• The food truck & equipment will cost Pappy $50,000. He will be able to depreciate the value of the truck & equipment on a straight-line basis over 10-years.
• Pappy expects to use it for 4 years and then sell the Food Truck for $30,000.
• Pappy does not expect the food truck to impact sales at his other stores.
• Pappy expect to sell 1,500 pies in the first year growing at a 5% annual rate.
• Pies sell for $20 on average. He does not expect to raise prices over the next 4 years.
• Variable costs tend to average 40% of sales.
• Fixed costs are expected to be $5,000 a year, growing at a 3% rate.
• Depreciation is not included in either Variable or Fixed Costs and needs to be calculated separately.
• Net working capital to support the truck is expected to be 5% of sales, and will be all liquidated at the end of the 4^th year.
• Pappy pays 20% in corporate income tax. Customers are charged any sales taxes and are not needed in the calculations.
• Pappy estimates the cost of capital for this project should be 12%.

-> Build a projected cash flow model on excel.

-> Using these assumptions calculate the projects NPV, IRR, MIRR, PI, Payback, and Discounted Payback.