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The owners of the Hawaiian restaurant Shaka Mea have decided to open little pop-up restaurants for takeaway in shopping malls. The planned opening is on
The owners of the Hawaiian restaurant Shaka Mea have decided to open little pop-up restaurants for takeaway in shopping malls. The planned opening is on the 1st of June. They have designed everything, the only need to decide on the type of takeout boxes they would like to order. There are two trustworthy suppliers: GreenBox2Go and Box2Go. One owner believes that their customers try to choose more sustainable options which might result in higher sales revenue, therefore favours supplier A who produces recyclable and home compostable boxes (GreenBox2Go) as opposed to supplier B, who would deliver plastic-lined board boxes (Box2Go); however the plastic-lined board boxes are cheaper than the biodegradable ones. The budget for ordering 100 000 boxes is $10,000. Ordering 100 000 boxes from GreenBox2Go cost $8,000, while ordering 100 000 boxes from Box2Go is $5,000. The expected cash flows for each year can be derived from the table below: GreenBox260 Box2Go Initial outlay $ -8 000 $ -5 000 Cash flow year 1 $ 1 400 $ 1 100 Cash flow year 2 $ 1 500 $ 1 200 Cash flow year 3 $ 1 500 $ 1 200 Cash flow year 4 $ 1 500 $ 1 200 Cash flow year 5 $ 1 500 $ 1 200 Cash flow year 6 $ 1 500 $ 1 200 Cash flow year 7 $ 1 500 $ 1 200 Calculate the payback period, NPV, PI, IRR and MIRR for both options. Use a 4% discount rate for your calculations. Answer up to 2 decimal places. GreenBox2Go Box2Go payback period NPV PI IRR % % MIRR % %
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