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PLEASE ANSWER. urgent. i will gove thumbs up. Colina is considering opening a mezcal and tequila bar in Laredo after the coronavirus pandemic subsides. She

PLEASE ANSWER. urgent. i will gove thumbs up. image text in transcribed
Colina is considering opening a mezcal and tequila bar in Laredo after the coronavirus pandemic subsides. She knows that about $2.3 million is collected in mized beverage alcohol taxes per year in Webb county (at a rate of 6.7% of the gross sale)and she believes her bar could get about 1.4% of the liquor sales in the county. Her variable costs likely to be 19% of her sales. She plans to hire 2 full-time bartenders at $13/hour (assume 2000 working hours per year)and a bar manager with a salary of 65,000/ plus 4.5 % of revenue. Finally , she expects $25,000 /year expenses
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Celina needs 200,000 to buy land in the location she wants, and $210,00 to build the bar and purchase equipment,furniture,etc. She will use straight libe depreciation over a 15 year period. She faces a tax rate of 20%. She will need to hold an additional $25,000 in net working capital from the start of the project, which will be freed at the end. Assume the bar will close after 15 years.
In order to finance a new store, she will borrow $235,000 from local bank, which will be paid off over fifteen years with equal monthly payments of $1700. The rest of her initial capital requirements will come from her savings. She estimates that her equity will be 2.25 times as risky as investing in publicly traded stocks, which an expected return of 9.75%. The risk free rate is assumed to be 1.40%.
Enter answers below; numbers should be rounded to two decimal places:
The operating cash flow( in thousands) for the project:_____
The discount rate used:_______
The value of the project( in thousands):______
Yes or no depending on whether the project is worth purchasing:_________
O . Dividends are considered a cost of doing business and are tax deductible QUESTION 17 Celina is considering opening a mezcal and tequila bar in Laredo after the coronavirus pandemic subsides. She knows that about $2.3 million is collected in mixed-beverage alcohol taxes per year in Webb county (at a rate of 6.7% of the gross sale), and she believes her bar could get about 1.4% of the liquor sales in the county. Her variable costs are likely to be 19 b her sales. She plans to hire 2 full-time bartenders at $13/hour (assume 2000 working hours per year), and a bar manager with a salary of $65,000/year plus 4.5% of revenue. Finally, she expects $25,000/year in miscellaneous expenses. Celina needs $200,000 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 207. She will need to hold an additional $25,000 in not working capital from the start of the project, which will be freed at the end. Assume the bar wil osaltar 15 years. In order to finance the new store, she wil borrow $236,000 from a local bank, which will be paid off over fifteen years with equal monthly payments of $1,700.00. The rest of her initial capital requirements will come from her savings. She estimates that her equity will be 2.25 times as risky as investing in publicly traded stocks, which have an expected return of 9.757. The risk-free rate is assumed to be 1.40%. Enter your answers below, numbers should be rounded to two (2) decimal places 1) 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 QUESTION 18 A savings account is

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