Steve: Darren we totally rocked this year!!!

Darren: Yes we did. But we have a problem. SAIT will only have a few students attending classes in May and June and almost no student during the months of July and August. What should we do during those 4 months?

Steve: That's easy. Let's take our show on the road. Healthy Eats Food Truck!!

Requirement:

Based on the budgeted data below, create a NPV analysis for Healthy Eats and determine (one to two pages, single spaced report) if a Healthy Eats Food Truck is a wise decision? Submit all supporting schedules.

Food Truck data:

Upfront Capital Costs:
Truck	81,800
Equipment	49,800
Permits & Licenses	1,000
Website	4,000
Register & Point of Sales System (POS)	1,500
Supplies (Pots, pans, fire extinguisher, chalk menu board, internet, legal fees uniforms)	1,500
Total	143,100

Rate of return	15%
Sale of Food Truck - end of 5 years	87,400

Revenue Expectation
1st Year:
May	24,500
June	34,800
July	36,100
August	44,400
Yearly growth	3%

Cost Data
Food Costs	31%
Labour Costs	25%
Operating Costs	25%