Using excel, do we accept or reject?

) The cotlee shop chan already otlers 3 types od dinks, each comes in 2sunes The cottee shop wants to add a breakfast sandwich and chicken nuggets. Current sales information of the existing drinks and estimated sales information for new foods according to the marketing consultant are Unit Price $2.50 $3.50 sales Small Coffee Large Coffee Small Tea Large Tea Small Hot Chocolate Large Hot Chocolate Breakfast Sandwich 500,000 $2.70 S3.00 $3.70 100,000 80,000 S4.50 50,000 (estimate) 55.00 60,000 2) Marketing consultant thinks that the market for the existing drinks is mature and the unit sales will not grow anymore. However, he believes that the sales of the 2 new products will grow by 3) The company plans to increase the prices (for both the existing and new products) at the inflation 4) Looking at the financial statements of the company you estimate that average production cost 5) To add the food business line, the company has to hire a food maager whose salary will be 5% per year for the next 10years. rate which is estimated to be 2% over the next 10 year (raw material, lab r and. . .) is 40% of the revenue. $90,000 for the first year plus %28 overhead costs (insurace, retirement, benefits, ). Her 6) The company pays S100,000 rent for its branches. The rent will increase by inflation rate every 7) The company paid S45,000 to its marketing consultant for providing all the marketing related 8) The company needs to buy new equipment for its branches to lunch the food business. The salary will increase by inflation rate over the next 10 years year. information. You'll also charge the company S60,000 for your financial advice oquipment plus the installation costs would sum up to $1,000,000. The company uses MACRS depreciation and the salvage value of the equipment after 10 years is estimated to be $50,000. The company also has to invest 10% of its estimated first year production cost in working capital which will be recovered at the end of the 10-year period 9) Page 1 of 2 10) Looking atthe financial information of the company you realize that he company's capital structure consists of 40% debt, 20% preferred stock and 40% common stock. All figures were 11) The company has only one bond outstanding that maturesia 10 years. It has 8% coupon rate with 12) The company's preferred stock pays S4 dividend per year and currently trades at $40 per share 13) Looking at yahoo.finance.com, you see that the beta of the company is 0.9. As a financial analyst, calculated using market value. annual coupon payment and S1000 face value. The bond currently trades at $920. Assume there is no floatation costs your estimate for the risk-free rate and the expected return on the market are 3% and 12% 14) The company has 30% marginal tax rate