GCU Total investment And Budgeting Questions
Description
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Option #1: Exotic Foods, Inc., Capital Budgeting Case
Exotic Food Inc., a food processing company located in Herndon, VA, is considering adding a new division to produce fresh ginger juice. Following the ongoing TV buzz about significant health benefits derived from ginger consumption, the managers believe this drink will be a hit. However, the CEO questions the profitability of the venture given the high costs involved. To address his concerns, you have been asked to evaluate the project using four capital budgeting techniques (i.e., NPV, IRR, MIRR and Payback) and present your findings in a report.
For your Module 3 Portfolio Milestone and using the additional information to be found in Module 8 Portfolio Project, you are asked to complete questions 1. and 2. as follows:
What is the total investment amount at the start of the project (i.e., year zero cash flow)?
What is the depreciation amount for each year?
Create a depreciation schedule
- You will include these answers in your completed final portfolio project.
- Option #2: Pilgrim Coffee Inc.
Pilgrim Coffee Inc. is a successful chain of coffee shops that offers handcrafted coffee and espresso drinks using outsourced coffee beans. In their quest to deliver the best cup of coffee around, top management has learned a lot about coffee beans from around the world and are considering the task of roasting their own coffee beans in house at their flagship cafe. They believe they can wholesale their roasted coffee beans to other coffee shops, both local and afar and offer their packaged beans to customers in-house as well use the beans for their own drink creations. The COO is worried about the potentially high costs involved and would like to use your finance knowledge to evaluate the new venture and address their concerns.
For your Module 3 Portfolio Milestone and using the additional information to be found in Module 8 Portfolio Project, you are asked to complete questions 1. and 2. as follows:
- What is the total investment amount at the start of the project (i.e., year zero cash flow)?
Prepare a depreciation schedule to show the amount of depreciation for each year.
Create a depreciation schedule
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