ICBI, Inc
Memo
To:
Board of Directors
From:
Anzhelika Fultz
CC:
Mr. Smith
Date:
November 6, 2012
Re:
Financial Reporting System
Financial Reporting System
Financial reporting system is very important process used by a companys
management to control financ
Q1) Do you think the project should be accepted? Why?
A) Yes, this project should be accepted, because its payback period is 3 years and it is making
profit.
Q2) Define and describe Net Present Value (NPV) as it pertains to the new cafe.
A) NPV as it pert
Your initial investment is the cost of the building:
-750,000
OPERATING CASH FLOW
Sales Revenue
- DIRECT EXPENSES (50%)
- INDIRECT EXPENSES
GROSS MARGIN TOTAL
- Depreciation expenses
Pre-Tax TOTAL (before taxes)
- taxes at 37%
After Tax TOTAL
+ Depreciati
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