1. Estimate the annual cash flows for the brewpub project. Describe all assumpti
ID: 2643849 • Letter: 1
Question
1. Estimate the annual cash flows for the brewpub project. Describe all assumptions and calculations you used to arrive at the final cash flows.
Consultation and Market Research costing $2,000.
The space costs $3,000 per month but Samantha thinks they can negotiate the rent down to $2,500 per month.
Samantha expects that initial construction costs could be as high as $250,000.
The cost of a high-quality brewpub system is $300,000.
The ingredients will cost $4,000 to make 10 barrels of beer.
Samantha estimates that it will cost about $15,000 per year.
He figures that he would need at least three additional servers per day at a cost to the restaurant of $80 per day per server and a starting salary of $40,000 per year.
Grant figures the insurance cost will be an additional $3,000 per year an additional $24,000 per year over what the restaurant currently pays in utilities expenses.
Explore Caf
Explanation / Answer
Particulars Cash Out Flow Market Research 2000 Rent per annum (2500*12) 30000 Initial Construction 250000 High quality brew pub 300000 Ingredients 15000 Salary 40000 Insurance 3000 Utilities 24000 Initial Licence Fee 65000 Advertising 80000 Media company fee 20000 Initial Inventory 10000 Total 839000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.