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Investigation of a business development proposal for a centre store in the business. - Essay Example
Author : marlen09
Pages 6 (1506 words)
Referred Project 2 Name: Institution : Course: Tutor: Date: Introduction The analysis in the sheet was based on financial data that the management of the business projected would be the cost of expanding the business to the Bristol store by renting the adjoining premises…
earned from the newly rented premises Expected income: these are the actual earning that are expected to be generated from the new premises Build up factor: it is the percentage of the maximum possible income that the managers of the business hope to make in the first few years after start up Cost of sales: these are the expenses that incurred in order for the business make sales and may include cost of raw materials and transportation cost among other costs. Net cash flow: this is the difference between the total expenses and the total income that the business generated; it is the money that the business was left with after paying its expense (Day, 2012, p26). Discount factor: this is the rate at which the management of the business depreciates the capital goods in the premise; the depreciation rate is done on an annual nominal rate Present value of net cash flow: this is the cash flow of the business that has been adjusted for depreciation. ...