Net Present Value and Papa Geo

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Papa Geo’s – Restaurant
Budget Proposal
For
2012 - 2017

BUSN-278
[Term]
Professor[name]
DeVry University

-------------------------------------------------
Table of Contents

Section| Title| Subsection| Title| Page Number|
1.0| Executive summary| | | |
2.0| Sales Forecast| | | |
| | 2.1| Sales Forecast| |
| | 2.2| Methods and Assumptions| |
3.0| Capital Expenditure Budget| | | |
4.0| Investment Analysis| | | |
| | 4.1| Cash flows| |
| | 4.2| NPV Analysis| |
| | 4.3| Rate of Return Calculations| |
| | 4.4| Payback Period Calculations| |
5.0| Pro Forma Financial Statements| | | |
| | 5.1| Pro Forma Income Statement| |
| | 5.2| Pro-Forma Cash flow Statement| |
| | 5.3| Pro-Forma Balance Sheets| |
6.0| Works Cited| | | |
7.0| Appendices| | | |
| | 7.1| Appendix 1: [description]| |
| | 7.2| Appendix 2:
[description] etc| |

* 1.0 Executive Summary
1.0 Executive Summary

*
* This budget proposal is for the starting and running of a single location, sit-down Italian restaurant named Papa Geo’s. The restaurant would be located in Orlando, Florida and would majorly target middle to lower-middle class families with children, as well as adults and seniors, thus making it a friendly and family place. The major product and service provided by the restaurant would be Italian food served buffet style with an all-you-can-eat format with a lot of variety including a salad bar, pizza, several different types of pasta with three or four types of sauces, soup, desserts, and a self-serve soda bar. There would also be a gaming area within the restaurant with gaming machines installed which would be of interest to children. The business would provide wholesome and fresh food, in a simple format, with very good prices and is located in a densely populated area, all of which would help the restaurant to do well and establish itself as a popular and profitable business. *

*

* Also, provide a second paragraph which describes how the budget supports the company’s strategy. *
* Finally, provide a third paragraph where you summarize the key points from your budget, including the planning horizon, the amount of up-front investment, the NPV, Payback and IRR of the project, as well as key figures from your income statement, cash flow statement, and balance sheet. *

* Remember, this is not a thesis or introduction of what you will talk about – it contains the major, specific content of each section. The second and third paragraph should be written after you have completed all other sections of this template. *

* As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own or you will lose points! *
* 2.0 Sales Forecast
2.0 Sales Forecast

*
* This section forecasts the sales of Papa Geo’s restaurant over a five-year period. Section 2.1 gives the estimated sales figures and a brief explanation on the changes in these figures over the planning period. * Section 2.2 delves into the details of how this sales estimate has been arrived at, calculations involved and the methods and assumptions used in the process. * Overall, this section is useful is providing an estimate of how much the restaurant can make in sales, given its internal specifics and external environment. *

2.1 Sales Forecast
*
* The yearly sales forecast for Papa Geo’s restaurant is given below. In $ | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Sales | 933,504.00 | 1,555,840.00 | 1,616,517.76 | 1,679,561.95 | 1,745,064.87 | *

My methods and assumptions for arriving at the sales figures in the table are detailed in section 2.2 The sales figure estimated per my calculations is taken as the sale figure for Year 2. This is because...
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