The required rate of return is 15%

Required:

1. Calculate ARR
2. Calculate the net cash flow for JJ Asian Cuisine for each proposal
3. Calculate payback,IRR, NPV, and EAA for both options
4. Comment on the outcome
5. Calculate the IRR and Payback for both proposals

Jason and James has provided you with the following financial reports. J&J Cuisine Income Statement J&J Cuisine Proforma (Budgeted) Income Statements 2021 2022 2023-2031 $ $ $ Revenue Sales 388,800.00 Restaurant meals sales 388,800.00 102,500.00 491,300.00 420,000.00 325,000.00 745,000.00 Total 388,800.00 106,380.00 6,480.00 172,100.00 Expenses Grocery expense Petrol expense Wages expense Packaging Supplies Depreciation expense - Vacuum sealer Depreciation expense -Bowl sealing machine Depreciation expense - website 104,500.00 3,880.00 268,000.00 20,700.00 176,000.00 4,200.00 322,400.00 23,261.00 21,600.00 133.33 133.33 133.33 600.00 600.00 600.00 400.00 400.00 400.00 2,000.00 2,000.00 2,000.00 Depreciation - car Depre - kitchen equipt / rest furniture / refit Promotional / Advertising 45,000.00 45,000.00 15,000.00 50,000.00 42,000.00 Rent expense 15,840.00 42,000.00 Electricity and Gas 15,180.00 26,000.00 22,000.00 3,200.00 Water 1,120.00 3,800.00 Business registration fee Interest expense 20,000.00 20,000.00 Total 341,833.33 582,413.33 680,794.33 64,205.67 Profit (loss) 46,966.67 -91,113.33 Jason and James has provided you with the following financial reports. J&J Cuisine Income Statement J&J Cuisine Proforma (Budgeted) Income Statements 2021 2022 2023-2031 $ $ $ Revenue Sales 388,800.00 Restaurant meals sales 388,800.00 102,500.00 491,300.00 420,000.00 325,000.00 745,000.00 Total 388,800.00 106,380.00 6,480.00 172,100.00 Expenses Grocery expense Petrol expense Wages expense Packaging Supplies Depreciation expense - Vacuum sealer Depreciation expense -Bowl sealing machine Depreciation expense - website 104,500.00 3,880.00 268,000.00 20,700.00 176,000.00 4,200.00 322,400.00 23,261.00 21,600.00 133.33 133.33 133.33 600.00 600.00 600.00 400.00 400.00 400.00 2,000.00 2,000.00 2,000.00 Depreciation - car Depre - kitchen equipt / rest furniture / refit Promotional / Advertising 45,000.00 45,000.00 15,000.00 50,000.00 42,000.00 Rent expense 15,840.00 42,000.00 Electricity and Gas 15,180.00 26,000.00 22,000.00 3,200.00 Water 1,120.00 3,800.00 Business registration fee Interest expense 20,000.00 20,000.00 Total 341,833.33 582,413.33 680,794.33 64,205.67 Profit (loss) 46,966.67 -91,113.33