It is January 1, 2019. You are a Senior Analyst at Ontario Coffee Home (CH), one of the leading coffee chains and wholesaler of coffee bakery products in Ontario. The CEO of Ontario Coffee Home, Jerry Donovan, has reached out to you to draft a report to evaluate two investment proposals.

(Case: Investment Proposals for Ontario Coffee Home )

1. identify which revenues and costs are relevant to your analysis and which costs are irrelevant. Summarize all the information that will be required for each investment proposal, including describing the proposal and identifying the time horizon for each proposal evaluation.

2. Calculate the after-tax cash flows during the life of each of the projects.

3. Utilizing the after-tax cash flows from question 2. evaluate each investment proposal utilizing the following criteria (unless directed otherwise

a. Payback

b. NPV 

4. Clearly indicate whether any of the above criteria support each of the project proposals, and what the company should ultimately decide to do ZO

Investment Proposals

Jerry Donovan CEO of OCH wants you to evaluate two investment proposals that the company is considering.

Answer rating: 100% (QA)

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