Budget Proposal Essay

1205 Words Oct 6th, 2012 5 Pages
| Papa Geo’s (5 Year Budget Proposal) | | | 1.0 Executive Summary |
Papa Geo’s is devoted to bringing top notch Italian cuisine at an affordable price that everyone can enjoy, because at Papa Geo’s you’re not just our guest you’re family. We offer a wondrous all-you-can-eat style buffet of the fines Italian cuisine. Unlike your typical sit-down buffets in the Orlando, Florida area; we ensure a unique experience with a combination of both exceptional foods as well as great entertainment that the entire family can enjoy. The following budget plan illustrations how our restaurant will manage our expenses to increase the company’s revenues allowing for a 10 % gain in profit of sales. The budget plan for Papa Geo’s
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The payback period for the loan would be within five years but could be paid off sooner. The discount rate used was a 10% rate which was chose to show the require investments rate of return. Attached below is our company’s investment information.

4.1 Cash Flow Statement

4.2 Net Present Value

4.3 Rate of Return
Papa Geo’s IRR 28%
The calculations was done based upon the data that was provided on the excel spreadsheet. (see spreadsheet for more details) Papa Geo's | Rate of Return | | Total for equipment | 122,114 | Depreciation | 24,423 | Cash inflows | 3,523,075 | Initial Investment | 992,000 | ARR | 3.53 | | Initial Investment | 992,000 | Annual Cash Inflows | 3,523,075 | IRR | 28% | | |

4.4 Payback Period

These numbers show that the loan would be paid in full with the first few months of the fourth year.

5.0 Pro-Forma Financial Statements

5.0 Pro-Forma Financial Statements

The following section breaks down the three most important parts to investing with our company. The pro-forma financial statement section is here to give you an overview of the significant impact our company can make within the span of five years. The next few sections are explain in detailed attachment of our projected outcomes at Papa
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