Presentation on Chloe Wants Coffee Shop

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Presentation on Chloe Wants Coffee Shop

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Chloe Jants Coffee Shop Keaton Bolonda Roosevelt Campbell Olivia Canby Presentation Outline Project Overview/Background -- Keaton Bolonda Financial Overview -- Additional Factors -Summary/Recommendations -- Best Management Practices -- Keaton Bolonda Project Overview -Ms. Jants has entertained the idea of opening up her own coffee for some time but she is ready to next steps Project Overview...continued Financial Overview Additional Factors Additional Factors...continued Initial Summary and Recommendations BPM Standards BMPC4-2 BPM Standards BMPC 4-1 CHAPTER 1 CREATING SPREADSHEET MODELS Chapter Review Class #1 Chapter 1 - Creating Spreadsheet Model Business Case #1 - Terra Cotta Brew and Coffee Shop (a) Overview of Functions, Business Business Skills, eText Grader Analysis Case and Terms Pages 45 - 47 Project (Memo) Class #1 Class #1 Class #2 Class #2 Class #3 Class #3 Functions Team(s) Present Case Class #3 (a) Grader Project and Business Analysis Questions (Memo) must be submitted prior to the beginning of class shown on the above chart . No work will b e accepted after deadline. Plan accordingly. IF PMT SUM VLOOKUP Skills & Terms 2-D Line Chart Absolute Cell Reference Autofill Comment Data Validation Drop-Down List Fill Colors Number Format Named Range Various Chart Styles, etc. Other Lecture Topics Inputs Decision Variables Outputs Uncertain Variables Class #3 Business Analysis Memo Business Case #1 Terra Cotta Brew and Coffee Shop Question 1 - What is the purpose of a spreadsheet model and how can a spreadsheet model help the owners of Terra Cotta Brew Coffee Shop make decisions about the renovation? a) Purpose- Spreadsheet models fall into two basic categories: Descriptive and Prescriptive. Descriptive models organize existing data; often into tables. Tables provide a useful format for presenting data as they have multiple statistical and organizational features (e.g., sum, average, counting, filtering, etc.). Prescriptive models incorporate data that will help the user make decisions about a future event. The model can also be organized to determine which data is the most sensitive to change (i.e., Sensitivity analysis) or to simulate a future event (i.e., Scenario analysis). Question 1 (Continued) - What is the purpose of a spreadsheet model and how can a spreadsheet model help the owners of Terra Cotta Brew Coffee Shop make decisions about the renovation? b) Decision Making- The Terra Cotta spreadsheet incorporates Descriptive and Prescriptive characteristics. ✓Descriptive: The “Sales Data” tab presents the coffee shop’s monthly sales history; a history that is further divided into six sales categories. ✓Prescriptive: In the “Analysis” tab, the owners will draw-upon the sales history, in combination with known facts regarding the planned renovations (i.e., interest rates, renovation costs, deposits, renovation time horizon, etc.), to create a scenario analysis model that will aid them in determining if they should proceed with the construction. Question 2 - Which variable did you indicate as your key Inputs, Decision Variables, Uncertain Variables, and Outputs? a) Key Inputs: ✓ Revenue History ✓ Renovation Costs ✓ Length of Construction b) Decision Variables: ✓ Investment Amount ✓ Construction Option (e.g., Expedite, Non-Expedited) ✓ Annual Percent Rate (APR) for the loan c) Uncertain Variables: ✓ Estimated Growth Rate d) Outputs: ✓ Additional Profits Question 3 - Describe how you incorporated each of the following design principles into the spreadsheet model. a) Accuracy: ✓ Use of Range Names in formulas ✓ Double-Checked inputs b) Clarity: ✓ Color-coded cell for Inputs, Decisions Variables and Uncertain Variables ✓ 2-D Line Chart c) Flexibility: ✓ Use of cell references in formulas (static vs. dynamic) d) Efficiency ✓ Use of Data Validation and drop-down lists e) Documentation: ✓ Use of Comments function Question 4 - Assuming the investment amount is $137,000 and the estimated growth rates are accurate, should the owners go with a monthly or quarterly payment plan? a) The spreadsheet model calculated four possible loan-repayment scenarios: 1. 2. 3. 4. Expedited with Monthly Payments = $392,069 Expedited with Quarterly Payments = $393,741 Non-Expedited with Monthly Payments = $371,866 Non-Expedited with Quarterly Payments = $373,667 b) If the owners are basing their decision solely on the total cost of the loan they should move forward with Non-Expedited Renovations and a bank loan with monthly payments. The total cost would be $371,866. Question 5 - Assuming the Expedited Renovations can be completed in three weeks, versus 13 weeks for Non-Expedited, provide the dollar amounts for the following: a) Average Weekly Profits for 2016: ✓ $150,075.45 / 52 weeks = $2,886.07 per week b) Lost revenue during Expedited Renovations: ✓ 3 * $2,886.07 = $8,658.20 c) Lost revenue during Non-Expedited Renovations? ✓ 13 * $2,886.07 = $37,518.91 d) Opportunity Cost for Non-Expedited Renovations? ✓ $37,518.91 - $8,658.20 = $28,860.71 Question 6 – Looking at Year 1 of the Data Analysis tab (column H), is the stated profit of $163,957.43 represent an accurate estimate for Year 1? Explain your response. a) Accurate (Yes/No)? ✓ No b) Why? ✓ The estimate does not include the time the coffee shop will be closed. ✓ If the owners opt for Expedited Renovations, profits for Year 1 would be $163,957.43 – ($2,886.20 * 3) = $155,299.23 ✓ If the owners opt for Non-Expedited Renovations, profits for Year 1 would be $163,957.43 – ($2,886.20 * 13) = $125,638.52…. A difference of $29,660.71 General Guidelines Regarding Team Presentations How Team Presentations Will Be Evaluated • The Team – Did everyone participate? – Were basic questions answered? – Did presentation go beyond the minimum requirements? • Presentation and Spreadsheet Organization – Did it flow… was it logical? – Did the analysis include Excel Functions and Skills that were not part of the Grader Project? • Use of Critical Thinking – The U.S. National Council for Excellence in Critical Thinking definition critical thinking: • The "intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action.“ – In other words…………. Did the group address additional Questions? Did they dig deeper or challenge data? – Analyze data as if you were Benjamin Disraeli • Use of BPM Standards – Designed to improve the Use, Understanding and Sharing of spreadsheets – State where they were used during your presentation BPM Standards (see Content of Blackboard) I) Title Page Terra Cotta Brew & Coffee Shop Evaluation of Business Options Team _____ - 4/4/18 II) Presentation Outline Presentation Outline • • • • • Project Overview and Background………. Name of Student Financial Review and Summary………… Name of Student Additional Factors and Revised Summary………… Name of Student Additional Excel Functions, Skills and Tools…….. Name of Student Best Management Practices………. Name of Student III) Project Overview and Background Project Overview and Background • Terra Cotta has chosen a contractor to renovate the coffee shop. The estimates fall into two categories: ✓ Expedited - $475,000 to complete the project a few weeks (i.e., 3 weeks) ✓ Non-Expedited - $450,000 to complete the project in 3 months (i.e., 13 weeks) • Coffee shop will need to be closed during the renovations • Internal Funding: ✓ Owner wants to limit cash-on-hand funding (deposit) to between $90,000 to $150,000. ✓ Owner’s indicated they were planning on investing $137,000 but would be open to your recommendation(s). • Gross Revenues in 2016 were $750,357 • Owner has estimated expenses to be 80% of revenue. Net Income was calculated to be $150,075 • External Bank Funding: From $300,000 (at 7.3%) to $360,000 (at 5.0%) at increments of $10,000 Project Overview and Background…continued • After meeting with the owners of Terra Cotta the team was convinced its’ management is better at brewing coffee than understanding finances. • The Case will required the team to answer questions regarding: ✓ How much capital to invest ✓ How much to finance for the project (i.e., bank loan) ✓ To determine if the projected revenues were sufficient to pay for the cost of the loan in 7 years. • In addition, our team developed several scenarios and considerations that were not part of our original scope of work. • In General: ✓ The Model will allow what-if analysis to estimate certain impacts on profits over 7 years (a time horizon indicated by the owners of Terra Cotta). ✓ Trying to determine the trade-off between amount financed and profits earned. IV) Financial Review and Considerations Financial Review • Renovation Options: Expedited ($475,000), Non-Expedited ($450,000) or Status Quo ($0) • Available Funding: $90,000 to $150,000. • Interest Rate on Bank Loan: 5.0% to 7.3%. • Monthly Payments and Total Interest will vary depending on Deposit and timing of renovations Original Grader Project Submission Initial Summary & Recommendations • Based solely on the Grader Project findings/analysis: ✓ We would recommend that the owners move forward with Non-Expedited renovations. ✓ Owners’ 7-year financial criteria had been met (i.e., Net Revenues exceeded Cost of Loan) ➢ Cost of the Non-Expedited renovations were $371,866 vs. $372,564 in bank payments. ➢ The $137,000 deposit fell within the owner’s parameters. V) Additional Factors and Revised Summary Additional Financial Factors to Consider ✓ Projecting future growth rates is always risky (aka; “Crystal Ball Gazing”) ✓ Terra Cotta’s projections only exceeded their financial criteria by $1,198.95 over seven years • If their projection in year-3 ends up being 8.1% vs. 8.3%, the criteria won’t be met. • “Hope” is not a business strategy. ✓ The owner was not able to take advantage of the different interest rates with the Expedited renovation option. Additional Financial Factors to Consider (Continued) ✓ The Grader Project did not take into account the Opportunity Cost of the two options. ✓ While the Non-Expedited approach met the owners’ financial criteria, our team found additional information that negated, or at the very least questioned, the original recommendation. ✓ In short, our team found several fatal flaws in the assumptions and base calculations. Consider all 14 Investment and Payment Options (Note deposit increases by $10,000 per scenario) Non-Expedited Renovations ($450,000) Investment Amount Amount Needed to Finance Total Cost with Monthly Payments Total Cost with Quarterly Payments $ 90,000.00 $ 100,000.00 $ 110,000.00 $ 120,000.00 $ 130,000.00 $ 140,000.00 $ 150,000.00 $ 360,000.00 $ 350,000.00 $ 340,000.00 $ 330,000.00 $ 320,000.00 $ 310,000.00 $ 300,000.00 Monthly Payments $ ($407,618.65) ($401,124.41) ($389,663.71) ($382,789.47) ($375,670.05) ($368,302.29) ($358,974.81) ($409,106.81) ($402,713.76) ($391,207.65) ($384,421.86) ($377,382.21) ($370,085.59) ($360,772.67) 6,794 $ 6,685 $ 6,494 $ 6,380 $ 6,261 $ 6,138 $ 5,983 Expedited Renovations ($475,000) Investment Amount Amount Needed to Finance Total Cost with Monthly Payments Total Cost with Quarterly Payments $ 90,000.00 $ 100,000.00 $ 110,000.00 $ 120,000.00 $ 130,000.00 $ 140,000.00 $ 150,000.00 $ 385,000.00 $ 375,000.00 $ 365,000.00 $ 355,000.00 $ 345,000.00 $ 335,000.00 $ 325,000.00 Monthly Payments $ ($435,925.50) ($424,602.76) ($413,280.02) ($406,854.75) ($395,394.06) ($388,589.31) ($381,539.89) ($437,517.00) ($426,152.92) ($414,788.84) ($408,466.81) ($396,960.70) ($390,246.43) ($383,278.81) 7,265 $ 7,077 $ 6,888 $ 6,781 $ 6,590 $ 6,476 $ 6,359 Monthly Payment Comparison Based on Deposits: Expedited vs. Non-Expedited $7,500 Difference of $435 $7,300 Monthly Payments Most Expensive “Non-Expedited” Least Expensive “Expedited” $7,100 $6,900 $90k $122k $6,700 $6,500 $6,300 $122k $150k $6,100 $5,900 $5,700 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 Investment Options Non-Expedited Expedited In Additional To the General Findings ✓ The model’s general appearance and formatting made it difficult to read. ✓ The model had limited functionality. ✓ Basic BPM Standards were not met. How the General Appearance was Improved Numbers should have applicable formatting Highlights for Uncertain, Decision and Input variable are too dark Center “No” in cell. Q26 indicates cell B10 is an Uncertain Variable Use indents and centering for ease of reading. Also……….. Colors in chart a very similar to highlights. (Confusion?) Owner Deposit Limitations: $90,000 to $150,000 designated for the deposit limit their ability to accept the Expedited renovation. APR 7.3% 7.0% 6.5% 6.0% 5.5% 5.0% Bank Quote • The funds Terra Cotta Amount to Finance $300,000.00 $310,000.00 $320,000.00 $330,000.00 $340,000.00 $360,000.00 $300,000 $310,000 $320,000 $330,000 $340,000 $360,000 Renovation Options $450,000 $475,000 $150,000 $175,000 $140,000 $165,000 $130,000 $155,000 $120,000 $145,000 $110,000 $135,000 $90,000 $115,000 Additional Factors That Should Be Considered • Opportunity Cost of being closed for 13 weeks versus 3 weeks. • • • • (Net Income / 52 weeks ) * Weeks Required for Renovation Instead of $372,564.20 of Net Income ….. $372,5654 - $28,860.66 = $343,703.54 (criteria shortfall) However, Expedited ends up paying for itself ($28,861 vs. $25,000) Profit by Year(s) Profits; Year 1 Profits; Year 2 - 7 Total Profit Stagnate Expedited Non-Exped. Exped. Diff $150,075 $141,417 $112,557 $28,861 $900,453 $1,259,135 $1,259,135 $0 $1,050,528 $1,400,552 $1,371,692 $28,861 Completion Expedited Non-Expedited Difference Weeks 3 13 10 Opportunity Cost Expedited $8,658.20 Non-Expedited $37,518.86 Difference $28,860.66 Comparing the Most Viable Options Category Duration (Wks.) Cost of Renovation Deposit* Bank Loan Interest Rate Total Interest Pmts. Added Revenue Total Revenue (7 Yrs.) 7-Year Out-of Pocket Renovations Total Interest Pmts. Added Revenue Total Expedited $ $ $ $ $ $ 3 475,000 150,000 325,000 6.50% 56,540 2,670 372,564 Expedited $ 475,000 $ 56,540 $ - Non-Expedited 13 $ 450,000 $ 137,000 $ 313,000 7.00% $ 58,867 $ $ 372,564 Difference -10 $ 25,000 $ 13,000 $ 12,000 -0.50% $ (2,327) $ 2,670 $ - Non-Expedited $ 450,000 $ 58,867 $ (2,670) Difference $ 25,000 $ (2,327) $ (2,670) $ 20,003 Benefit? (Exp. - Non.Exp.) Yes No No Yes Yes Yes Yes Neutral * Net Present Value over 5 years (i.e., time value of money) has not been calculated. Upon further review and analysis, the recommendation would be different. Comparing the Options Instead of a proposing a Non-Expedited renovation with a $137,000 deposit, it would be in the owners’ best interest to proceed with an Expedited renovation with a $150,000 deposit. Profit by Year(s) Profits; Year 1 Profits; Year 2 - 7 Total Profit Stagnate Expedited Non-Exped. Exped. Diff $150,075 $141,417 $112,557 $28,861 $900,453 $1,259,135 $1,259,135 $0 $1,050,528 $1,400,552 $1,371,692 $28,861 Relative to Terra Cotta’s profits over 7 years, Expedited renovations provides $28,861 of additional profits. Total Renovation Costs Deposit Loan Costs; Mthly Pmts. Total Renovation Costs Stagnate Relative to Total Cost, Non-Expedited approach with a $150,000 deposit is the least expensive. Summary 7-Yr. Change in Cash Stagnate Expedited Non-Exped. Exped. Diff $1,050,528 $869,012 $862,717 $6,296 Expedited Non-Exped. Exped. Diff $0 $150,000 $150,000 $0 $0 $381,540 $358,975 $22,565 $0 $531,540 $508,975 $22,565 However, if remaining “stagnate” is not an option, the Expedited renovations provides the best option (i.e., a positive change in cash of $6,296). VI) Additional Excel Functions, Skills and Tools Project Overview and Background…continued • Our presentation will include the following Excel function and skills that were not part of the Grader Project: ✓ ✓ ✓ ✓ Amortization Schedule Tables Conditional Formatting Chart Tools; Change Colors Improvements in Functionality Comparative Amortization Schedules Non-Expedited and $137,000 Down Payment Loan Interest Term Payments $ 313,000 7.0% 5.00 $6,197.78 Month 1 2 3 4 5 6 7 8 9 10 11 12 53 54 55 56 57 58 59 60 Total Interest Paid Total Principal Paid Total Payments $ $ $ 58,867 313,000 371,867 Loan Interest Term Payments Beg. Bal. $ 313,000 $ 308,628 $ 304,231 $ 299,808 $ 295,359 $ 290,884 $ 286,383 $ 281,856 $ 277,302 $ 272,722 $ 268,115 $ 263,481 $ $ $ $ $ $ $ $ $ $ $ $ Interest 1,826 1,800 1,775 1,749 1,723 1,697 1,671 1,644 1,618 1,591 1,564 1,537 Principal $4,371.94 $4,397.44 $4,423.10 $4,448.90 $4,474.85 $4,500.95 $4,527.21 $4,553.62 $4,580.18 $4,606.90 $4,633.77 $4,660.80 $ $ $ $ $ $ $ $ $ $ $ $ Subtotal 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 $ $ $ $ $ $ $ $ $ $ $ $ End. Bal. 308,628 304,231 299,808 295,359 290,884 286,383 281,856 277,302 272,722 268,115 263,481 258,820 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 282 247 213 178 143 107 72 36 $5,915.99 $5,950.50 $5,985.21 $6,020.13 $6,055.24 $6,090.57 $6,126.10 $6,161.83 $ $ $ $ $ $ $ $ 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 6,197.78 $ $ $ $ $ $ $ $ 42,390 36,439 30,454 24,434 18,378 12,288 6,162 0 48,306 42,390 36,439 30,454 24,434 18,378 12,288 6,162 Expedited and $150,000 Down Payment $ 325,000 6.5% 5.00 $6,359.00 Month 1 2 3 4 5 6 7 8 9 10 11 12 53 54 55 56 57 58 59 60 Total Interest Paid Total Principal Paid Total Payments $ $ $ 56,540 325,000 381,540 Beg. Bal. $ 325,000 $ 320,401 $ 315,778 $ 311,129 $ 306,456 $ 301,757 $ 297,032 $ 292,282 $ 287,506 $ 282,705 $ 277,877 $ 273,023 $ $ $ $ $ $ $ $ $ $ $ $ Interest 1,760 1,736 1,710 1,685 1,660 1,635 1,609 1,583 1,557 1,531 1,505 1,479 Principal $4,598.58 $4,623.49 $4,648.53 $4,673.71 $4,699.03 $4,724.48 $4,750.07 $4,775.80 $4,801.67 $4,827.68 $4,853.83 $4,880.12 $ $ $ $ $ $ $ $ $ $ $ $ Subtotal 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 $ $ $ $ $ $ $ $ $ $ $ $ End. Bal. 320,401 315,778 311,129 306,456 301,757 297,032 292,282 287,506 282,705 277,877 273,023 268,143 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 269 236 203 169 136 102 68 34 $6,090.04 $6,123.03 $6,156.19 $6,189.54 $6,223.07 $6,256.77 $6,290.66 $6,324.74 $ $ $ $ $ $ $ $ 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 6,359.00 $ $ $ $ $ $ $ $ 43,564 37,441 31,285 25,095 18,872 12,615 6,325 0 49,654 43,564 37,441 31,285 25,095 18,872 12,615 6,325 VII) Best Management Practices (“BPM Standards”) Use of BPM Standards Formats & Styles: 2. Cell Data Alignment (BPMC 4-2) – This Standards recommends the formatting of data to be consistent and that the numbers themselves are in alignment within various ranges. • Before: Difficult to read large numbers without commas. Also, money is displayed in 2 and 3 decimals. 2016 Revenue 2016 Costs 2016 Profits 750377.26 600301.808 150075.452 • After: Formatted for Currency with commas and no decimals. Also toned-down the fill color. 2016 Revenue 2016 Costs 2016 Profits $750,377 $600,302 $150,075 Use of BPM Standards Formats & Styles: 3. Use of Purpose-Based Styles (BPMC 4-1): This Standard recommends the incorporation of consistent “Styles” to indicate the purpose of the cells. • Inputs = • Decision Variables = • Uncontrolled Variables = 2016Revenue Revenue 2016 2016Costs Costs 2016 2016Profits Profits 2016 RenovationCosts Costs Renovation Investment InvestmentAmount Amount Amount AmountNeeded Needed totoFinance Finance APR APRfor forLoan Loan Term Term $750,377 750377.26 $600,302 600301.808 $150,075 150075.452 $450,000 $450,000 $137,000 $150,000 313000 $300,000 0.07 7.3% 55 years years Expedite Expedite Project? Project? No No Chloe's Coffee Shop Loan Analysis - Option 1 Loan Amount Interest Rate Term of Loan (years) Payments per Year Monthly Payment (end of period) Monthly Payment (beginning of period) $ 218,000.00 7.20% 10 12 $2,553.69 $2,538.46 Loan Analysis - Option 2 Loan Amount Monthly Payment Term of Loan (years) Payments per Year Interest Rate (end of period) Interest Rate (beginning of period) $218,000.00 $2,200.00 10 12 3.93% 4.00% Loan Analysis - Option 3 Loan Amount Interest Rate Monthly Payment (end of period) Total Number of Payments (end of period) Term of loan in years $218,000.00 7.20% $2,200.00 150.91 12.58 Loan Analysis - Option 4 Loan Amount Interest Rate Term of Loan (years) Payments per Year Quarterly Payments $218,000.00 7.2% 10 4 $7,692.29 Quarter Principal Payments 1 $3,768.29 2 $3,836.12 3 $3,905.17 4 $3,975.47 5 $4,047.02 6 $4,119.87 $3,924.00 $3,856.17 $3,787.12 $3,716.83 $3,645.27 $3,572.42 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Totals $4,194.03 $4,269.52 $4,346.37 $4,424.61 $4,504.25 $4,585.33 $4,667.86 $4,751.88 $4,837.42 $4,924.49 $5,013.13 $5,103.37 $5,195.23 $5,288.74 $5,383.94 $5,480.85 $5,579.51 $5,679.94 $5,782.18 $5,886.26 $5,992.21 $6,100.07 $6,209.87 $6,321.65 $6,435.44 $6,551.28 $6,669.20 $6,789.24 $6,911.45 $7,035.86 $7,162.50 $7,291.43 $7,422.67 $7,556.28 $218,000.00 $3,498.26 $3,422.77 $3,345.92 $3,267.69 $3,188.04 $3,106.97 $3,024.43 $2,940.41 $2,854.88 $2,767.80 $2,679.16 $2,588.92 $2,497.06 $2,403.55 $2,308.35 $2,211.44 $2,112.79 $2,012.36 $1,910.12 $1,806.04 $1,700.08 $1,592.22 $1,482.42 $1,370.65 $1,256.86 $1,141.02 $1,023.10 $903.05 $780.84 $656.44 $529.79 $400.87 $269.62 $136.01 $89,691.74 Chloe's Coffee Shop Discount Rate Total Initial Investment 3.50% -$218,000.00 Cash Flows Year 0 -$218,000.00 Year 1 $10,000.00 Year 2 $12,300.00 Year 3 $15,100.00 Year 4 $18,600.00 Year 5 $22,800.00 Year 6 $28,100.00 Year 7 $34,600.00 Year 8 $42,500.00 Year 9 $52,400.00 Year 10 $64,400.00 Net Present Value Internal Rate of Return $18,600.69 4.75% Chloe's Coffee Shop Cost of Asset Salvage Value Useful Life $24,000.00 $9,000.00 5 Straight Line Depreciation End of Year 1 2 3 4 5 Depreciation expense for year $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 Accumulated depreciation at end of year $3,000.00 $6,000.00 $9,000.00 $12,000.00 $15,000.00 Book value at end of year $21,000.00 $18,000.00 $15,000.00 $12,000.00 $9,000.00 Declining-Balance Depreciation End of Year 1 2 3 4 5 Depreciation expense for year $3,511.58 $3,511.58 $2,886.52 $2,372.72 $1,950.38 Accumulated depreciation at end of year $3,511.58 $7,023.17 $9,909.69 $12,282.41 $14,232.79 Book value at end of year $20,488.42 $16,976.83 $14,090.31 $11,717.59 $9,767.21 Number of Customers Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count 158.6451613 3.703107787 156 178 20.61803157 425.1032258 -0.824359363 -0.276802332 70 122 192 4918 31 Number of Custome 143 155 132 178 166 154 123 187 156 153 153 156 152 152 178 128 146 173 125 173 165 128 192 163 176 187 167 188 165 182 122 Number of Customers 143 155 132 178 166 154 123 187 156 153 153 156 152 152 178 128 146 173 125 173 165 128 192 163 176 187 167 188 165 182 122 Chloe's Coffee Shop Day of the Number of Moving Month Customers Average 143 155 132 178 166 154 123 187 156 153 153 156 152 152 178 128 146 173 125 173 165 128 192 163 176 187 167 188 165 182 122 #N/A #N/A #N/A #N/A #N/A #N/A 150.1429 156.4286 156.5714 159.5714 156 154.5714 154.2857 158.4286 157.1429 153.1429 152.1429 155 150.5714 153.5714 155.4286 148.2857 157.4286 159.8571 160.2857 169.1429 168.2857 171.5714 176.8571 175.4286 169.5714 Mean Median Mode Min Max Range Variance Standard Deviation 158.65 156 178 250 122 192 150 70 425.10 20.62 200 Value 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 100 50 0 1 3 5 7 9 Moving Average Actual Forecast 9 11 13 15 17 19 21 23 25 27 29 31 Data Point s Chloe's Coffee Shop Month January February March April May June July August September October November December Total Customers 7,689 7,572 6,589 5,672 4,889 4,324 5,638 6,583 7,203 7,763 7,878 8,112 Average Standard Deviation Desired Minimum Quantity Probability 6,659 1265.58649 7,100 36.38% Standard Deviation 4 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 Quantity 46,217 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 33,695 41,807 41,807 49,685 65,137 72,709 72,709 Probablilty 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 -0.8 -0.9 -1 -1.1 -1.2 -1.3 -1.4 -1.5 -1.6 -1.7 -1.8 -1.9 -2 -2.1 -2.2 -2.3 -2.4 -2.5 -2.6 -2.7 -2.8 -2.9 -3 -3.1 -3.2 -3.3 -3.4 -3.5 -3.6 -3.7 -3.8 -3.9 -4 72,709 79,912 79,912 79,912 79,912 93,084 66,740 66,740 66,740 66,740 66,740 66,740 61,068 55,430 55,430 55,430 55,430 55,430 50,541 50,541 50,541 50,541 50,541 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 46,217 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% lower limit 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 upper limit 11722 11595 11469 11342 11215 11089 10962 10836 10709 10583 10456 10330 10203 10076 9950 9823 9697 9570 9444 9317 9191 9064 8937 8811 8684 8558 8431 8305 8178 8051 7925 7798 7672 7545 7419 6659 6659 6659 6659 6659 6659 6533 6406 6280 6153 6027 5900 5773 5647 5520 5394 5267 5141 5014 4888 4761 4634 4508 4381 4255 4128 4002 3875 3748 3622 3495 3369 3242 3116 2989 2863 2736 2609 2483 2356 2230 2103 1977 1850 1724 1597 7292 7166 7039 6912 6786 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 6659 Monthly Customer Distribution Monthly Customer Distribution 0% Probability 0% 0% 0% 0% 0% 0% 20,000 40,000 60,000 Total Monthly Customers 80,000 100,000 Chloe's Coffee Shop 25 65 18 32 34 63 25 22 45 47 15 19 16 25 65 72 41 48 36 37 25 26 28 29 33 58 56 Visits per month 29 3 29 7 6 22 25 31 27 15 19 23 2 13 5 8 24 16 28 5 30 22 7 18 14 11 8 Covariance Correlation -63.1667 -0.3982 Age-Visits Correlation 35 30 Visits per Month Age 25 20 15 10 5 0 0 10 20 30 40 Age 50 60 60 70 80
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Chloe Jants Coffee Shop
Keaton Bolonda
Roosevelt Campbell
Olivia Canby

Presentation Outline
Project Overview/Background -- Keaton Bolonda
Financial Overview -- Keaton Bolonda
Additional Factors -- Keaton Bolonda
Summary/Recommendations -- Keaton Bolonda
Best Management Practices -- Keaton Bolonda

Project Overview
-Ms. Jants has entertained the id...


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