Determine how many cups of coffee do have to sell roi

Assignment Help Financial Econometrics

Reference no: EM13332737

Add or not add a coffee machine to your bakery Cost:$20K Price per cup: $2.00 Cups sold per day: 25 Assumptions:

A. 1. You are open 7 day per week 2. Raising or lowering the price has not effect on sales 3. Price of coffe, sugar, etc. and cups are included in the 20,000K price Questions: How long will it take to break even?

B. Assumption 2 no longer applies. All other assumptions apply. How much do you have to charge within reason to make a 10% Return on Investment (ROI) ? C. Assumption

3. All of the assumptions in A apply, i.e. you cannot raise the price, how many cups of coffee do you have to sell to make 10% ROI? All answers must be set-up in an Excel as a Financial Model.

Reference no: EM13332737

Questions Cloud

What is cryptons cost of capital for the firms tax rate : Crypton Electronics has a capital structure consisting of 45% common stock and 55% debt. A debt issue of $1,000 par value, 6.2% bonds that mature in 15 years and pay annual interest will sell for $978.

Fluctuations in the level of economic activity : Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Can I get some help comparing and contasting the economic fluctuation of the U.S. from 1990 to present with reference..

Implement some very sophisticated server-side scripting : Discuss this in relation to server security, the continuing trend to eCommerce and the continual rise in popularity of PHP as a solution to eCommerce applications.

Find average force does the punter exert on the ball : A football punter accelerates a football from rest to a speed of 9 m/s during the time in which his toe is in contact with the ball, what average force does the punter exert on the ball

Determine how many cups of coffee do have to sell roi : You are open 7 day per week 2. Raising or lowering the price has not effect on sales 3. Price of coffe, sugar, etc. and cups are included in the 20,000K price Questions: How long will it take to break even

Prepare cash flow forecast and conduct sensitivity analysis : Prepare a cash flow forecast. Assume that the business will be run for 6 years, and then the building will be sold for 300,000. The equipment will be depreciated straight line over the life of the restaurant.

Difference between a personality and an artist : Playwrights, designers, and directors are often called "artists" of one sort or another; yet in the U.S actors are often considered "personalities" rather than artists. What is the difference between a personality and an artist when it comes to actin..

Find initial momentum of the system : A car of mass 150 kg is moving right with a velocity of 6 m/s and another one of mass 200 kg is moving left with a velocity of 4 m/s. find initial momentum of the system

What is the probability that alicia filled the order : Alex, Alicia and Juan fill orders in a fast-food restaurant. Alex incorrectly fills 20% of the orders he takes. Alicia incorrectly fills 12% of the orders she takes. Juan incorrectly fills 5% of the orders he takes.

User Account

All Pages