Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Your parent offer you the opportunity to invest 5,000,000,000 VND in new beverage shop
(coffee/ milk tea/ bubble tea …) on the existing building on their property. It is located in the
city centre. This building has 200m2 of space. Assumed that the project lasts 10 years,
opportunity cost of capital is 10%, corporate income tax is ignored.
a. You should make some assumptions and forecast initial investment (cost of repairing
old building and purchase of fixed assets); operation cash flow (annual sale revenue
price per cup of drinks, number of cups of drinks per year, all relevant costs of
operating, depreciation expenses, profit and cash flow from operation); and cash flow
from changes in working capital. For each of assumption, clarify and explain in details
the amount forecasted.
b. For this project, calculate:
- NPV (Net present value)
- Payback period
- Profitability index
c. Do you invest this project? Why?

Sagot :

st317845

profitability index

Explanation:

our money will be save for our future

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.