opening coffee shop
Instructions
it should have 2 option and make compression between the showing the analysis with tool used and calculation " put table and graph " and which option used with reason from example , We want to open a coffee shop, and we want to know the economic details of whether the project is successful or notPlease explain all the tools and calculations to find out like PW , ROR , AE etc...provide cash flow for each option and put the comparison in table showing the ROR , PW , Payback period also , explain why we choose the option and should provide reasons economical reasonsif possible to put the fixed cost and variable cost and mix cost
Answer
Payback Period Commutative cash flow-AEDCash flow-AEDPeriod ( year)(200,000)200,0000(77,739)122,2611216,253293,9922688,587472,3343Payback period = 1+cumulative cash f lowof previous yearcash flow of the next yearPayback Period = 1+77,389/293, 992 = 1+ 0.26 = 1.26 years
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