• How many cakes would Lady M need to sell in a year in order to break even. Does this number seem feasible given prior sales?
• Assuming sales are break-even, how quickly would sales need to grow after the first year to pay the start-up costs within 5 years? Is this growth rate feasible?
• What is your recommendation? Should Romaniszyn open the new location in the World Trade Center?
• Calculate free cash flows in years 2012-2014 and projected free cash flows in 2015-2019.