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Cofee shop Calculation

The document presents a financial analysis including NPV calculations for different scenarios over three years, focusing on revenue, costs, and profit. It compares the effects of changing sales prices and growth rates on cash flows and NPV. The analysis shows varying outcomes, with one scenario resulting in a positive NPV of 66,422, while another scenario yields a negative NPV of 80,591.

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awaisjugno
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5 views

Cofee shop Calculation

The document presents a financial analysis including NPV calculations for different scenarios over three years, focusing on revenue, costs, and profit. It compares the effects of changing sales prices and growth rates on cash flows and NPV. The analysis shows varying outcomes, with one scenario resulting in a positive NPV of 66,422, while another scenario yields a negative NPV of 80,591.

Uploaded by

awaisjugno
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Q1 NPV Calculation

Year 1 Year 2 Year 3


Sales 130 156 187
Cofee Sales Growth 100 120 144
Sandwitch Sales Growth 30 36 43

Year 1 Year 2 Year 3


Revenue 317,550 381,060 457,272
Variable Cost 95,265 114,318 137,182
Employee Salary 210,240 210,240 210,240
Rent 84,000 84,000 84,000
(71,955) (27,498) 25,850
Sum Cash Flows 182,956.06
Tax 1
Sum of Cash Flows after Tax 135,387
NPV (80,591)

Q3 Changing the Sale Price


Year 1 Year 2 Year 3
Revenue 412,450 494,940 593,928
Variable Cost 123,735 148,482 178,178
Employee Salary 210,240 210,240 210,240
Rent 84000 84000 84000
Profit -5525 52218 121509.6
Sum Cash Flows 677,302
Tax 1
Sum of Cash Flows after Tax 501,203
NPV 66,422

Q3 Changing Growth from 20% to 30%


Year 1 Year 2 Year 3
Sales 130 169 220
Cofee Sales Growth 100 130 169
Sandwitch Sales Growth 30 39 51

Year 1 Year 2 Year 3


Revenue 317,550 412,815 536,660
Variable Cost 95,265 123,845 160,998
Employee Salary 210,240 210,240 210,240
Rent 84,000 84,000 84,000
Profit (71,955) (5,270) 81,422
Sum Cash Flows 538,945
Tax 0.74
Sum of Cash Flows after Tax 398,820
NPV 25,277
Year 4 Year 5
225 270
173 207
52 62

Year 4 Year 5
548,726 658,472
164,618 197,542
210,240 210,240
84,000 84,000
89,868 166,690

Year 4 Year 5
712,714 855,256
213,814 256,577
210,240 210,240
84000 84000
204659.52 304439.424

Year 4 Year 5
286 371
220 286
66 86

Year 4 Year 5
697,657 906,955
209,297 272,086
210,240 210,240
84,000 84,000
194,120 340,628

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