Details: A quaint but well-established coffee shop, the Hot New Cafe, wants to build a new café for increased capacity. Define the key terms necessary to incorporate capital budgeting for this investment.
For this assignment, you must write a 3 - 4 page proposal on what the café managers should consider within their capital budget. You must also define the key terms necessary to understand capital budgeting. You must answer the following:
• What should management of the new café include in their capital budget.
o Identify at least 6 items
• From the provided of list of 10 examples, review and compare Café Market Budgets and their cost of capital (I am to find or recommend usable sites?
o Analyze and Compare at least two different cafe house/businesses
• Define and describe Net Present Value (NPV) as it pertains to the new café.
• Define and describe the internal Rate of Control
• Define discounted cash flow and payback period
Objective: • Analyze the cost of capital, capital budgeting, debt instruments and markets