week 7 project
lseter517
week7.docxYour Company Name
Your Company Name
Budget Proposal
for
[enter years here]
BUSN-278
[Term]
Professor[name]
DeVry University
Table of Contents
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Section |
Title |
Subsection |
Title |
Page Number |
7.0 |
Appendices |
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7.1 |
Appendix 1: Sales Forecast |
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7.2 |
Appendix 1: Capital Expenditure Budget |
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7.3 |
Appendix 1: Cash Flows |
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7.4 |
Appendix 1:Pro Forma Financial |
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7.5 |
Appendix 1: Pro Forma Cash Flow Statement |
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7.0 Appendices
NOTE: Start this section at the top of a new page.
This section of the budget proposal is where you’ll attach all of the supporting materials that you’ve referenced in the preparation of your plan, and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report. Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.
7.1 Appendix 1: [put a description here]
7.2 Appendix 1: [put a description here]
7.3 Appendix 1: [put a description here]
7.0 Appendices
This section of the budget proposal is where you’ll attach all of the supporting materials that you’ve referenced in the preparation of your plan, and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report. Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.
7.1 Appendix 1: Sales Forecast
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Sales |
100000 |
150000 |
250000 |
400000 |
500000 |
7.2 Appendix 1: Capital Expenditure Budget
|
Item |
Cost |
Quantity |
Total cost |
Source |
|
Registering a business |
200 |
1 |
200 |
ehow.com |
|
Renovation of facility |
18000 |
1 |
18000 |
Given |
|
Soda fountain bar |
3620 |
1 |
3620 |
Soda-dispenser.com |
|
2 pizza ovens |
860 |
2 |
1720 |
Alibaba.com |
|
Salad and Pizza/dessert bar |
1250 |
1 |
1250 |
Alibaba.com |
|
Commercial Refrigerator |
3400 |
1 |
3400 |
Coldtechcommercial.com |
|
Cash Register |
180 |
2 |
360 |
ebay |
|
Range /Oven |
530 |
1 |
530 |
Restaurant Depot |
|
Hood /Ancillary System |
7000 |
1 |
7000 |
Restaurant Depot |
|
Laptop for management |
285 |
1 |
285 |
Best Buy |
|
Desk for mgmt. |
25 |
1 |
25 |
Restaurant Depot |
|
Staff Microwave |
320 |
1 |
320 |
Restaurant Depot |
|
Staff cupboard |
120 |
1 |
120 |
Assumed |
|
Staff refrigerator |
700 |
1 |
700 |
Restaurant Depot |
|
Tables |
250 |
20 |
5000 |
Tableschairsbarstools.com |
|
Chairs |
40 |
80 |
3200 |
Restaurant-services.com |
|
Busing cart for restaurant |
60 |
1 |
60 |
Ebay |
|
Commercial Dishwasher |
2100 |
1 |
2100 |
Ebay |
|
Restaurant signage |
130 |
1 |
130 |
brightledsigns.com |
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Total |
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48020.00 |
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7.3 Appendix 1: Cash Flows
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Project with uneven cash flows |
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Year |
Metric |
0 |
1 |
2 |
3 |
4 |
5 |
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ARR accounting rate of return |
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Enter total annual sales years 1 to 5 from for your course project company's Week 2 Five Year Sales Forecast |
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10,000 |
15,000 |
25,000 |
40,000 |
50,000 |
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Calculate net operating cash flows years 1 to 5 (assume = 35% sales). |
35.0% |
|
3,500 |
5,250 |
8,750 |
14,000 |
17,500 |
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Enter straight line annual depreciation years 1 to 5 = (initial investment - salvage value)/5. |
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11,525 |
11,525 |
11,525 |
11,525 |
11,525 |
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Annual accounting income/(loss) years 1 to 5 = net operating cash flow minus annual depreciation |
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(8,025) |
(6,275) |
(2,775) |
2,475 |
5,975 |
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Compute ARR = average accounting income for years 1 to 5 which is the sum of accounting income /5, divided by the initial investment (with no minus sign). |
3.6% |
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NPV net present value |
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Project interest rate (assume = 8%) |
8.0% |
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Enter net operating cash flows |
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|
3,500 |
5,250 |
8,750 |
14,000 |
17,500 |
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Enter initial investment in year 0 (a cash outflow is a negative amount). |
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(48,020) |
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Add cash inflow (positive amount) from receipt of salvage value (aka FMV fair market value) in year 5 (assume = 20% of initial investment) |
20.0% |
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9,604 |
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Net operating and investing cash flows years 0 to 5 |
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(48,020) |
3,500 |
5,250 |
8,750 |
14,000 |
27,104 |
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PV $1 factor using project discount rate. The PV factors were calculated using the formula for PV $1, |
|
1.0000 |
0.9259 |
0.8573 |
0.7938 |
0.7350 |
0.6806 |
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Calculate each column's PV cash flows |
|
(48,020) |
3,241 |
4,501 |
6,946 |
10,290 |
18,447 |
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Compute NPV $ years 0 to 5 which = the sum of the PV cash flows |
(4,595) |
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IRR Internal rate of return |
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IRR Internal rate of return %: |
5.2% |
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Payback |
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Payback table >>> |
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Yr |
Investment |
Ann CF |
Cumulative CF |
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Enter initial investment from year 0 shown in (cash outflow is negative) |
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0 |
(48,020) |
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(48,020) |
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Enter the net cash flows for years 1 to 5 |
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1 |
|
3,500 |
(44,520) |
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Payback is achieved when cumulative cash flow is $0 |
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2 |
|
5,250 |
(39,270) |
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3 |
|
8,750 |
(30,520) |
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4 |
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14,000 |
(16,520) |
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5 |
|
27,104 |
10,584 |
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Payback is achieved in which year |
5.39 |
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7.4 Appendix 1: Pro Forma Financial
7.5 Appendix 1: Pro Forma Cash Flow Statement
