Task: You need to complete a 12-month Cash Flow Forecast for the below business. Read the information carefully and use the example above and the underline guidance to help you! Ahmed is setting up a coffee shop His opening balance (cash in the bank) will be 1000. . He estimated he will make 3000 each month in sales (EXCEPT in May and June when he will make 5000 because people are on their holidays! He will receive 500 each month from her investors. . He will also receive a loan payment in FEBRUARY of 5,000 from the bank. He will pay 800 each month for rent, 800 each month for wages and 500 each month for stock. He will pay 400 each month for bills (EXCEPT in May and June when he will pay 600 because of the extra customers!) In January, he will spend 5000 on equipment (such as coffee machines) WHAT IS THE CLOSING BALANCE IN June? January Feb March April May June Inflows Cash Sales Investor Payments Loan Total Inflows Outflows Rent Equipment Bills Wages Stock Total Outflows Net Cash Flow Opening Balance Closing Balance 2. Average Rate of Return (ARR) Project E Project A 5,000 Project B 4,000 Project C 4,500 Project D 6,000 Initial investment 9,000 1,000 1,000 EO 500 EO 1,000 4,000 0 7,000 3,000 3,000 Year 1 est. profits Year 2 est. profits Year 3 est. profits Year 4 est. profits Year 5 est. profits ARR 5,000 6,000 7,000 7,000 6,000 3,000 5,000 6,000 5,000 12,000 7,000 4,000 5,000 6,000 Ahmed is considering investing in five different projects. Using the information above make a recommendation as to which project he should choose. Explain your answer (and show your workings). (5 marks) 3. Project A Project D Project B 40,000 15,000 1,000 3,000 Project C 14,500 EO 3,000 1,000 Project E 9,000 1,000 EO EO 3,000 3,000 7,000 Initial investment Year 1 est. profits 1 Year 2 est. profits Year 3 est. profits Year 4 est. profits Year 5 est. profits ARR 50,000 5,000 7,000 8,000 8,000 8,000 50,000 55,000 7,000 7,000 15,000 3,000 EO 6,000 5,000 384 words