Scenario:

Your client owns a successful restaurant in downtown Chicago (at least pre-Covid-19!).She wants to open a second restaurant in the suburbs and has asked you to help her choose between a presentation that shows your recommendation to your client (and why).Forest ParkRosemontInitial Investment(see your specific investment amount below)Annual cash inflows$1,000,000$1,100,000Annual cash outflows$400,000$650,000Annual non-cash (all depreciation) expenses:Use straight line depreciation to find!# of years of expected useful life of project2530For both, assume no residual value and:(see your specific discount rate below)Use textbook Exhibit 13B-2 (or the annuity document/chart in this module) where applicable.PROJECT 2 REQUIREMENTS:Prepare a PowerPoint presentation and/or Zoom video that you would give/show to your client that clearlyidentifies your recommendation as to which location she should select to open her second restaurant.Additional MUST HAVES, include clearly identified calculations of the four capital budgeting methodologies(showing your work, not the work of Google or Excel programmers!) we have used in this module,and sufficient information on what these metrics mean, particularly as it relates to your preference decision.

Initial Investment is $2,500,000 with a discount rate or any number between 4 to 14%