Write My Essay We are the most trusted essay writing service. Get the best essays delivered by experienced UK & US essay writers at affordable prices.
Prepare a capital budget
Prepare a capital budget for the Hot New Cafe with the net cash flows for this project over a 5-year period.
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 .$200,000 a year. The cost of the building for the new cafe will be a total , 5850,000, which will be depreciated straight line over the next 5 years. The firm’s marginal tax rate is 38%, and its cost of capital is 10%. 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 above: 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 a. describe net present value (NPV) as it pertains to the new cafe. Assume the company has a P/B (payback) policy of not accepting projects with you think the project should be accepted? Why?
Sample Solution
n small before it became small. Moreover, if things only became smaller, and not larger, eventually everything would be miniscule. And if it was the other way around, where everything only became larger, and not smaller, everything would eventually be one t Prepare a capital budget hing, because everything would have joined t Prepare a capital budget ogether. If this were the case then we would notice that things only become smaller, shorter, or uglier, and never their opposites, or vice versa. Socrates shows that things do transition from two opposites, by referencing to observable examples. He contrasts this to death, and claims that there has to be a cycle of becoming alive and becoming dead, or else everything would become dead, or vice versa. The analogies that Socrates uses are applicable to every corporeal thing in the universe. Everything is either large or Prepare a capital budget small, tall or short, etcetera. He claims that there is a process of becoming from its opposite (e.g. something becoming larger from being small), and that this process is cyclical. For if everythi>
n small before it became small. Moreover, if things only became smaller, and not larger, eventually everything would be miniscule. And if it was the other way around, where everything only became larger, and not smaller, everything would eventually be one thing, because everything would have joined together. If this were the case then we would notice that things only become smaller, shorter, or uglier, a Prepare a capital budget nd never their opposites, or vice versa. Socrates shows that things do transition from two opposites, by referencing to ob Prepare a capital budget servable examples. He contrasts this to death, and claims that there has to be a cycle of becoming alive and becoming dead, or else everything would become dead, or vice versa. The analogies that Socrates uses are applicable to every corporeal thing in the universe. Everything is either large or small, tall or short, etcetera. He claims that there is a process of beco Prepare a capital budget ming from its opp Prepare a capital budget osite (e.g. something becoming larger from being small), and that this process is cyclical. For if everythi>
Is this question part of your Assignment?
We can help
Our aim is to help you get A+ grades on your Coursework.
We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals
