You are planning to open a special restaurant in a college town. Please give a workable plan and write a financial analysis report to present its feasibility according to the following procedure.

Please answer the following questions in your analysis.

1. Brief introduction

Please introduce your restaurant, including at least the following three aspects.

What is the food style of your restaurant and why? (Traditional American, Italian, Thai, etc. Burgers, Sushi, noodles, seafood, etc.)

Whats your restaurants location and why?

The scale of your restaurant.

2. Cost and Benefit Estimation

Please conduct on-site investigation (show your work and references if using any) to get the cost & benefit estimation including at least the following aspects:

Purchase storefront (assume it as non-depreciable asset) and license fee

Tables, chairs, tableware, air conditioner, etc.

Decoration, advertisement, etc.

Number of employees and their average salary.

Annual cost of raw material, utilities, etc.

Daily number of customers, personal price.

3. Financing

Suppose you need an initial fund equal to the upfront investment, i.e., sum of a, b, and c in Question 2. You have half of it and still need a 3-year bank loan of the other half with annual interest rate 9%.

4. Income statement

Display income and expense data in a tabular format and get the annual profit for your restaurant. When considering depreciation, please state your own assumption clearly.

5. Cash flow and payback period

Draw cash flow of your investment and find the year of payback period. The payback period is the length of time required to recover the cost of an investment ignoring the time value of money.

6. IRR

Using your payback period to calculate IRR and compare it with MARR. We assume MARR to be 5%.

7. Modification

If IRR is less than MARR, think of potential method to modify your plan.