PPT made for my COMM447 class

1. Present by:
(Amy) Yu Shuang Lim & (Angela) Qi An
yul270@mail.usask.ca

3. Soy Milk
Jellied Tofu Soup
Steamed stuffed bun
Chinese Long Doughnut
Chinese Pancake

4. • Prime Location
• Easy access to target market
• Competitors:
Where are we?

5. Total Operating Expenses $325,495
(81%)
Furniture and Fixtures
$75,000 (19%)
First Year Capital Expenses
Total Operating Expenses Furniture and Fixtures
Financial Budget
On year 2018:
• Equity Investment $ 80,000
• Long-term Debt $ 0

6. ü Number of customer per day
Critical Risk Factors
Sensitivity Analysis
Number Cust /day
Average 5
Year Profit ERR
Year 5
Dividend
Payback
Period
100 (1,832) - - 6 Bankrupt
110 17,093 25.4% 45,338 4
120 34,876 34.3% 63,044 3
130 51,754 42.4% 80,749 3 Base Case
140 67,728 49.6% 98,455 2
150 83,702 56.7% 116,160 2
160 99,676 63.4% 133,866 2

7. 72,728
141,603
222,352
316,227
1 2 3 4 5
Cumulative Cash Flow
üPayback Period = 3 Years
üAverage dividend per year over 5 years= $86,671
Initial Investment 80,000
Gross Payback 1,972,113
Net Payback 1,892,113
Payback and Owners’ Compensation

9. Marketing Budget: $10,504
(Excludes the $40,000 delivery order
revenue that goes to Skip the Dishes)