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Year 0 1 2 3 4 5 initial renovations costs 180000 cash increase in Food & beverage revenue

Year 0 1 2 3 4 5
initial renovations costs -180000          
cash increase in Food & beverage revenue   775200 852720 937992 1031791 1134970
cash increase in Food & beverage costs   271320 298452 328297 361127 397240
net increase in food & beverage operating cash flow   503880 554268 609695 670664 737731
less: depreciation on the original investment   360000 360000 360000 360000 360000
net taxable after depreciation   143880 194268 249695 310664 377731
less: income taxes on net operating cash flow   35970 48567 62424 77666 94433
add: depreciation (noncash)   360000 360000 360000 360000 360000
additional investment in working capital required   15504 1550 1706 1876 2063
reserve for equipment replacements (capex)   6000 22004 24554 26760 29636
net cash flow -180000 446406 482147 521011 564362 611599
net working capital required 0 15504 17054 18760 20636 22699

Cost of capital: (in % in two decimal places)

- beta of the equity?

-premium on the market?

- risk free rate of return?

-cost of equity financing?

-percentage of equity financing?

Payback periods?

average return on investment?

internal rate of return?

net present value (discounted cash flows)?

 

Sep 08 2020 Read more Less More

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