Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

A quaint but well-established coffee shop, the Hot New Cafe, wants to build a new cafe for increased capacity. Expected sales are $800,000 for the first 5 years. Direct costs including labor and materials will be 50% of sales. Indirect costs are estimated at $100,000 a year. The cost of the building for the new cafe will be a total of $750,000, which will be depreciated straight line over the next 5 years. The firm’s marginal tax rate is 37%, and its cost of capital is 12%.

For this assignment, you need to develop a capital budget. It is important to know what the cafe managers should consider within their capital budget. You must also define the key terms necessary to understand capital budgeting. In this assignment, please show all work, including formulae and calculations used to arrive at financial values. You must answer the following:

Using the information in the assignment description:
Prepare a capital budget for the Hot New Cafe with the net cash flows for this project over a 5-year period.
Calculate the payback period (P/B) and the net present value (NPV) for the project.
Answer the following questions based on your P/B and NPV calculations:
Do you think the project should be accepted? Why?
Define and describe Net Present Value (NPV) as it pertains to the new cafe.
Define payback period. Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years. Do you think the project should be accepted? Why?
A double-spaced, two page Word document that contains answers to the word questions.
You must include a Microsoft Excel spreadsheet for your calculations.
Either the Word document or the Excel spreadsheet must have all of your calculation values, your complete calculations, any formulae that you used, the sources you wish to cite, and your answers to the questions listed in the assignment guidelines.
Your submitted assignment must include the following:

Both the questions should only have a similarity index of 25% or less.


Financial reporting

Financial reporting contains the revelation of monetary info to organization and the community

about how the business is performance over a precise era of period….

SOURCE: allaplusessays.com
All A+ Essays – PLACE YOUR ORDER HERE: https://allaplusessays.com/order

Havent found the Essay You Want?
We Can Assist
The Paper is Written from Scratch Specifically for You

    WHY allaplusessays.com

  • Confidentiality & Authenticity Guaranteed
  • Plagiarism Free Content Guarantee
  • All A+ Essays Guarantee Timely Delivery of All Papers
  • Quality & Reliability
  • Papers Written from Scratch and to Your Instructions
  • Qualified Writers Only
  • All A+ Essays Allow Direct Contact With Your Writer
  • Using allaplusessays.com Means Keeping Your Personal Information Secure
  • 24/7 Customer Support

GET QUALITY ESSAY HELP AT: https://allaplusessays.com/order


testimonials icon
1.Topic:Role of education in Human Capital in Econ Development in  Emerging Economies2. 8 pages paper (cover page and reference not include...
testimonials icon
AED 222 Week 4 DQs...
testimonials icon
Intercultural Communications Geert Hofstede is one of the leading experts on intercultural communications to compare your home culture with another...
testimonials icon
This is a writing test, I have to finish in 2 hours. Please do not accept this work if you can not finish on time.I can no...
testimonials icon
DUE 7/25/17 @5PM...
testimonials icon
VIRUS1AssignmentNameInstitutionDateVIRUS2Stuxnet is the virus that initially arranged news in July suitable to its utilization ofguaranteed vulnerabi...
testimonials icon
Order Grade A+ Academic Papers Instantly!...
testimonials icon
ACC 260 WEEK 5 DQ 1.doc...
testimonials icon
i need 800 or above words i need it simple words not acimday word   ...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price