Exhibit 2 EQUIPMENT REQUIREMENTSGeneral EquipmentUnitsCost per UnitTotalTelephone System12,000Computer System2$4,0008,000Espresso Machines18,000Regular Coffee Machines4$1,0004,000Coffee Grinders2$1,5003,000Stereo System3,00028,000Roasting EquipmentRoaster150,000Packaging Heat Sealer14,000Scales / Scoops5$5025054,250FurnitureBar / Roasting Station20,000Tables 15$1,00015,000Chairs60$1006,000Couches4$5002,000Shelves4,00047,000OtherDcor10,000Dishes, cutlery5,00015,000Total144,250

7. Assume a July to June 12-month period, prepare a cash budget for the first year, by month and annual. Assume that the capital investments and other start-up costs would incur in the first month - July. Also assume that the sales volume in July and August would be only 50% of the average monthly forecast. All sales are cash sales. All purchases and operating expenses would be paid in the month of the purchase. Would the $250,000 loan be sufficient to cover the cash flow for the year? The company would be making monthly principal and interest payment for the loan starting July. Based on the cash budget, would the company be able to pay back the loan in 5 years? (12 marks)

8. Perform a detailed internal and external analysis of Caf Xaragua applying tools such as SWOT, PEST, etc. (10 marks).

9. Assess the profitability of regular drink, speciality drink, bakery items, and bagged coffee. Which products has the highest and lowest profitability? Assess the pricing strategy of Caf Xaragua in the target market and present your observations. (5 marks)