Question

Imagine that you own (250,000$) and you want to invest it in your dream plan. estimate the initial cost and annual cash flow details (operation and maintenance costs, raw material, salaries, overheads…etc.). Then compute the rate of return ROR.

Note: you don’t need to consume the 250,000$, any cheaper investments are fine. Any larger investment is allowable under loan consideration or suitable explanation.

Answer 1

My dream plan is to own a fast food joint of my own:
Total cost-	$              180,000
Initial cost:
Land	$              100,000
Building	$                60,000
Furniture and Equipment	$                20,000
Total price per unit (burger +Fries+coke)	$                           4
Total units sold per year	100,000
Total yearly revenues	$              400,000
Opertional cost:	% of revenues	Amount
Cost of material	35%	$ 140,000
Employee cost	25%	$ 100,000
Manitenence cost	10%	$    40,000
Overheads	5%	$    20,000
Total Yealy cost	75%	$ 300,000
Total yearly profits	100,000	<--Total yearly revenues-total yearly costs

You can change this to any other plan of your choice. I have taken a fast food joint business.

Please reach out for any clarifications