Please prepare a spreadsheet as in Chapter 9 to show the cash flow of a business for 10 years, internal rate of return, and the net present value of the proposed project. Based on that determine weather you should open up a business or not. The business that is chosen is a Coffee Shop.

... ..... Majestic Mulch & Compost Co ... 0000 Majestic Mulch and Compost Company (MMCC) YEAR 0 1 2 3 3 4 5 6 5,000 6,000 6,500 6,000 5,000 4,000 3,000 120.00 $ 120,00 $ 110.00 $ 110.00 $ 110.00 $ 110.00 $ 110.00 Background Data: Unit Sales Estimates 3,000 Variable Cost /unit $ 60.00 Fixed Costs per year $ 25,000.00 Sale Price per unit $ 120.00 $ 120.00 $ Tax Rate 21.0% Required Retum on Project 15.0% YTONWC $ 20,000.00 NWC % of sales 15% Equipment cost - installed $ 800,000 Salvage Value in year 8 20% of equipment cost 800,000 Depreciation Calculations: Equipment Depreciable Bes MACRS % (Eqpl7yn Recovery Allowance Book Value 14.29% 114,320 685,680 24.49% 195,920 489,760 17.49% 139,920 349,840 12.49% 99,920 249,920 8.93% 71,440 178,480 8.92% 71,360 107,120 8.93% 71,440 35,680 4.46% 35.680 0 20% After-Tax Salvage Value Salvage Value Book Value (Year 8) Capital Gain/Loss Taxes Net SV (SV-Tares) 160,000 @ 160,000 33,600 126,400 Required Net Working Capital Investment 20,000 54,000 90,000 108,000 107,250 99,000 82,500 66,000 49,500 ... ..... Majestic Mulch & Compost Co ... 0000 Majestic Mulch and Compost Company (MMCC) YEAR 0 1 2 3 3 4 5 6 5,000 6,000 6,500 6,000 5,000 4,000 3,000 120.00 $ 120,00 $ 110.00 $ 110.00 $ 110.00 $ 110.00 $ 110.00 Background Data: Unit Sales Estimates 3,000 Variable Cost /unit $ 60.00 Fixed Costs per year $ 25,000.00 Sale Price per unit $ 120.00 $ 120.00 $ Tax Rate 21.0% Required Retum on Project 15.0% YTONWC $ 20,000.00 NWC % of sales 15% Equipment cost - installed $ 800,000 Salvage Value in year 8 20% of equipment cost 800,000 Depreciation Calculations: Equipment Depreciable Bes MACRS % (Eqpl7yn Recovery Allowance Book Value 14.29% 114,320 685,680 24.49% 195,920 489,760 17.49% 139,920 349,840 12.49% 99,920 249,920 8.93% 71,440 178,480 8.92% 71,360 107,120 8.93% 71,440 35,680 4.46% 35.680 0 20% After-Tax Salvage Value Salvage Value Book Value (Year 8) Capital Gain/Loss Taxes Net SV (SV-Tares) 160,000 @ 160,000 33,600 126,400 Required Net Working Capital Investment 20,000 54,000 90,000 108,000 107,250 99,000 82,500 66,000 49,500