Reference no: EM133087371
Let's now turn and discuss how businesses analyze a capital investment decision. Please copy and paste the weblink below to your internet browser and watch the Youtube video. Who can tell me what factors Hard Rock Cafe was considering when investing in a café or theme park? Tell me what you learned in paragraph form that addresses some of the questions further below.
https://www.youtube.com/watch?v=nAJHUDrcAQg
Questions:
-What kind of decision making is involved for the Hard Rock Café Theme Park?
-What is the range of costs to open a Hard Rock Café (not the park)?
-What is the new Hard Rock Café estimate discussed in the video cost?
-What is the first step in projecting cash flows? What are the two sets of cash flow projections called? What are the three categories of the business?
-In regards to the Hard Rock Café Park, what is the range computed for the payback period and what range does the company require?
-What is the range computed for the Net Present Value and IRR?
-Will Hard Rock Café probably give this project an approval?
-What is the capital investment estimate for the Hard Rock Park?
-Will Hard Rock Café be financing most of the park?
-Why is this investment method attractive to Hard Rock Café?
-Please search on the internet and discuss what you find out about the Hard Rock Park?