I want you to apply the concepts we have discussed in class in a fun way. I do hope you will enjoy this exercise. Once upon a time, there was an amazing group of students who lived in Cronfwoman OneFiveOne. Right next to their house, was a hotel and within that hotel was a caf called Caf Bastel. The amazing students were approached by an investor, Ms Finn Ance Major, who asked for their help. The investor was contemplating buying Caf Bastel for $1 million and wondered if that was a good investment. What is your recommendation to Ms Finn Ance Major? Here is some information to get you started:

1. The caf sells (nonalcoholic) beverages as well as snacks and lunch

2. The caf is open for 7 days, from 7am to 7pm

3. At any point in time, there are 2 employees working in the caf

4. The investment horizon is 10 years 5. Use a discount rate of 12%

6. Use a tax rate of 35% You will need to make assumptions (capex, working capital..).

There is no right answer first think about the big picture (strategy, marketing, .) and then how that story translates into your assumptions. You will be graded based on the structure of your analysis, the consistency and realism of your assumptions, your creativity, and your use of the tools/learnings from class.