Proposals using the calculations above to explain

Reference no: EM13940028

Jamie Oliver is considering expanding his restaurant trade. He has the following two proposals to consider. A minimum of a 12% return on investment is required from the recommended project.
Proposal 1:
A restaurant in Birmingham City Centre seating for 100 guests. The complex will be built at an initial cost of £450,000.
Proposal 2:
A restaurant in Nottingham City Centre seating capacity 250. Cost to build £600,000.
?Projected cash flow and profits are as follows:
-image-

Required: Calculate for both proposals

Net Present Value @ 12% return
Payback period
Accounting Rate of Return

Evaluate the business proposals using the calculations above to explain which proposal may be worth pursuing. Identify the advantages and limitations of each method in your explanation and what considerations Jamie Oliver must take into account before undertaking such investment opportunity.

Reference no: EM13940028

Questions Cloud

Display all of the elements of the arraylist : Once the user does this (hits enter without typing anything), the program will display all of the elements of the ArrayList, both the index and String values, in a table. It will do this via a single loop.

Identify the objectives of the activity : 1. Provide a brief description of the activity for which the risk management process will be applied. Be clear and concise, indicating the exact aim of the activity 2. Identify the objectives of the activity (the risk identification exercise in Pa..

How would you determine reasonable : Assume that you are the chair of the PGA Rules Committee. Following the Martin decision (PGA Tour,Inc V Martin 531 U.S. 1049 2001), you are charged with reviewing the rules and developing a policy on how to determine reasonable accommodation. What..

Find the margin of error : Find the critical value for zα/2 that corresponds to a degree of confidence of 98%. Find the margin of error for the 95% confidence interval used to estimate the population proportion with n = 163 and x = 96

Proposals using the calculations above to explain : Jamie Oliver is considering expanding his restaurant trade. He has the following two proposals to consider. A minimum of a 12% return on investment is required from the recommended project.

Understood from a cbt perspective : Lee is a university student who comes to counselling because he is very unhappy and considering giving up his place at University. Lee came from China to study in Australia and is finding it difficult to make friends and meet new people, as his fa..

Compute the contribution margin ratio for the mailboxes : Compute the contribution margin ratio for the mailboxes. How much revenue must Doerhing earn in order to break even?

Object-oriented application to manage students : GPA is calculated using the Quality Point algorithm (each A is worth 4 points, B - 3, C - 2, D - 1, F - 0; Find the sum of that value times the number of credits for all courses, then divide by the total number of credits.).

Characteristics of a range of food production systems : Examine and discuss the characteristics of a range of food production systems and the various food and beverage service systems (use your selected organisation as an example.

User Account

All Pages