Our team has a global venture project of opening up a restaurant in Hong Kong with a California cuisine. (Please see attachments for details).
We desperately need a budget for this restaurant. Please see attached excel spreadsheet as a guide.
Here are the instructions:
Prepare a budget and financial overview for your global venture. Prepare a financial analysis in terms of currency risk management and financing of your global operation. Discuss what financial institutions and instruments you would use to achieve your global expansion.
Use the Capital Budgeting Microsoft Excel Template to complete the analysis (see excel attachment)
As a minimum, apply the following capital budgeting techniques to assess the financial viability of your project
o Net Present Value (NPV)
o Internal Rate of Return (IRR)
o You may use the data provided in the Capital Budgeting MS
Excel Template as the basis for your analysis (recommended) or you may
enter your own specific data to make the analysis more real life.
o Identify potential domestic and international sources of financing to the organization
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From the capital budgeting techniques, we can derive the expected value of positive NPV and IRR results of 15.29%. Moreover the PB is very short, which shows that this project has the potential to generate profit for California Breeze Restaurant. However, in order for California Breeze Restaurant to expand internationally, the company is required to raise funds for the expansion project.
When California Breeze Restaurant wants to expand its business to Hong Kong, it is advisable that they have estimated the total amount of funds required to cover up the new established business. Then, they can go on to start determining the financing options for a new start-up company. There are two major forms of financing options. The first one is debt financing, whereby the company has to get a loan from someone or somewhere. The loan can be in the form of short-term or ...
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