Home » t is the implied interest rate on your bank loan, based on the above information? From the profit viewpoint, would this be a viable business to start?…

t is the implied interest rate on your bank loan, based on the above information? From the profit viewpoint, would this be a viable business to start?…

What is the implied interest rate on your bank loan, based on the above information?

From the profit viewpoint, would this be a viable business to start? Explain

You are thinking about becoming a Paradise Coffee franchisee. Franchisees are offered a business specializing in producing an exclusive line of exotic coffee drinks (similar to Starbucks). Franchisees have had good success in towns without a Starbucks (Paradise franchises gross $250,000 sales on average per year). An expense you will have to pay Paradise Coffee, Inc., is a franchise fee of $2,000 a year plus 1.5% of gross sales. You will also pay an annual National advertising fee of 2% of gross sales. Paradise requires that you use their logo-imprinted goods (plates, cups, napkins) which will cost you $32,000 per year. You also have to use Paradise coffee beans (featuring the exclusive Paradise Roast). You estimate using 375 pounds of beans a year at a cost of $11.00 per pound. Other food ingredients (syrups, muffins, biscotti, whipped cream, soft drinks, etc) will cost $14,000 a year. Other annual expenses are: three workers at a total cost of S60,000; rent $9,600; utilities $4,200; and liability insurance $1,200. You will have to invest $50,000 of your savings (presently earning 5% per annum) and borrow another $60,000 (on which you will pay explicit interest of S3,900 a year). Note: neither the amount of the bank loan nor the $50,000 of your own money you invest is an explicit or implicit cost. However, the interest paid on the bank loan is explicit and the interest foregone on your savings is implicit manager at the VEGGIE Café, earning $45,000 a year (a job you will have to quit to go into Paradise Coffee). Moreover, you believe you are (implicitly) worth $12,000 more than VEGGIE is presently paying you. . You are presently employed as an assistant

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10