Define discounted cash flow and payback period

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A quaint but well-established coffee shop, the Hot New Cafe, wants to build a new cafe for increased capacity. Define the key terms necessary to incorporate capital budgeting for this investment.

• What should management of the new cafe include in their capital budget.

o Identify at least 6 items

• From the provided of list of 10 examples, review and compare Cafe Market Budgets and their cost of capital (I am to find or recommend usable sites?

o Analyze and Compare at least two different cafe house/businesses

• Define and describe Net Present Value (NPV) as it pertains to the new cafe.

• Define and describe the internal Rate of Control

• Define discounted cash flow and payback period

• Analyze the cost of capital, capital budgeting, debt instruments and markets

Reference no: EM13183243

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