Tinkerball hotdogs & Ice-cream Essay Example for Free

Tinkerball hotdogs Ice-cream Essay The purpose of this paper is to perform a case study analysis and provide a solution to the review questions pertaining to different aspects of projection evaluation and, thereby, concluding with recommendations. Mr. Terry Bell is planning to sell ice-cream and hotdogs by acquiring Mr. Jonathan van and other equipment from Mr. Luigi. Mr. Jonathan wishes to sell off his van and has asked Mr. Terry’s services to sell it off. There is a resale price for this van. Mr. Luigi had been in the same business of mobile vending van for almost 10 years and had an accident recently. He wishes to sell off his equipment and supplies at a price to Mr. Terry. Mr. Luigi was selling ice-cream under a franchise agreement with a company Mr. Whippy which will be no longer applicable after completion of 10 years and Mr. Terry shall not be entitled to terms under this franchise agreement. Mr. Terry has been provided with financial data by Mr. Luigi for last 10 years and has been able to draw the cash flows from the operating activities of the business. We will now look at the review questions and provide answers for them: If it is assumed that no cones are wasted the average price per icecream is $8.33 Term 1 2 3 4 5 6 7 8 9 10 Icecream Sales 55,660 37,660 49,880 54,350 57,560 44,350 56,430 57,990 55,320 58,010 Cones 2,783 1,883 2,494 2,718 2,878 2,218 2,822 2,900 2,766 2,901 Icecream 3,340 2,260 2,993 3,261 3,454 2,661 3,386 3,479 3,319 3,481 Franchise Fees 557 377 499 544 576 444 564 580 553 580 Total Payments 6,680 4,520 5,986 6,523 6,908 5,323 6,772 6,959 6,638 6,962 Price : Sales/Payments 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 Figures are stated in U.S. Dollars terms Table 1: Average Selling Price of Icecream As we can see from Table 2, the sales of icecream are more revenue generating and the return on investment / cost is higher compared to the sales of hotdogs, therefore, icecream is more profitable. Term 1 2 3 4 5 6 7 8 9 10 Icecream Sales 55,660 37660 49880 54350 57560 44350 56430 57990 55320 58010 Total Payments 6,680 4,520 5,986 6,523 6,908 5,323 6,772 6,959 6,638 6,962 Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 ROI % 733.23 733.19 733.28 733.21 733.24 733.18 733.28 733.31 733.38 733.24 Hot dogs Sales 21,210 33,320 23,240 22,210 19,990 24,380 20,890 21,990 21,210 24,300 Total Payments 4,772 7,497 5,229 4,997 4,498 5,486 4,700 4,948 4,772 5,468 Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 ROI % 344.47 344.44 344.44 344.47 344.42 344.40 344.47 344.42 344.47 344.40 Figures are stated in U.S. Dollars terms Table 2: Products Profitability From table 3, it is apparent that the sales of hotdogs are riskier. The rationing is based on the net cash flow from two products. The net cash flow from sales of ice cream are more consistent in terms of increasing trend, however, that from sales of hotdogs has a variant trend and is therefore considered to be riskier. Term 1 2 3 4 5 6 7 8 9 10 Icecream Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 Change% (32.34) 32.45 8.96 5.91 (22.95) 27.24 2.76 (4.60) 4.86 Hot dogs Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 Change% 57.09 (30.25) (4.43) (10.00) 21.96 (14.31) 5.26 (3.54) 14.56 Figures are stated in U.S. Dollars terms. Negative figures are in bold parenthesis. Table 3: Risk Evaluation Diversification Diversification is a risk management technique. From table 3 above we can conclude that by diversifying into two products it allowed Mr. Luigi to cater different customers. By doing this it is also noted that if one is product does not perform well in a year then the other product which may be doing comparatively well can reduce the negative impact on the cash flows. For projecting the remaining 3 weekends’ estimates (A) we assume that a constant average growth in figures based on 47 working weekends. This is performed by apportioning 47 working weekends result to total 50 working weekends. Another prudent approach can be adopted (B) where the YoY% change is adjusted for remaining 3 weekends. It is also assumed that franchise fees and license fees are paid at the start of the financial year and will remain the same. Year / Item 9 10 (47 weekends)    Actual Figures x 50/47 (A) Growth Rate   Ã‚  x 50/47 (B) Icecream sales 55,320 58,010 61,713 58,182 Hotdog Sales 21,210 24,300 25,851 24,497 Total Sales 76,530 82,310 87,564 82,679 Cones 2,766 2,901 3,086 2,910 Icecream 3,319 3,481 3,703 3,491 Buns 2,651 3,038 3,232 3,063 Hotdogs 2,121 2,430 2,585 2,450 Vehicle-related payments 2,880 2,660 2,830 2,646 Franchise fees 553 580 580 580 License fees 150 150 150 150 Total payments 14,441 15,239 16,166 15,289 Net cash flow 62,089 67,071 71,398    67,390    Figures are stated in U.S. Dollars terms Table 4: Estimates for remaining 3 working weekends For calculating the average annual rates for both products we assume figures from Table 4 Col B as the cash flow for the last year. Average Annual Growth Rate (AAGR) is ‘the average increase in the value of an individual investment or portfolio over the period of a year’ (Investopedia n.d.). Average annual rate is calculated by taking the arithmetic mean for 2 years. We also assume that cash flows are generated at the end of the financial year. In the first year it is assumed to have 100% growth. All other aspects of investment and setting up business expenses are ignored for the first year. Term 1 2 3 4 5 6 7 8 9 10 Given 10 New Icecream Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 51,201 Change% 100 (32.34) 32.45 8.96 5.91 (22.95) 27.24 2.76 (4.60) 4.86 5.17 AAGR % 33.83 0.06 20.71 7.43 (8.52) 2.14 15.00 (0.92) 0.13 0.29 Hot Dogs Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 24,497 Change% 100 57.09 (30.25) (4.43) (10.00) 21.96 (14.31) 5.26 (3.54) 14.56 15.49 AAGR % 78.55 13.42 (17.34) (7.21) 5.98 3.82 (4.52) 0.86 5.51 5.97 Figures are stated in U.S. Dollars terms. Negative figures are in bold parenthesis. Table 5: Average Annual Growth Rates Assumptions: Terry pays Mr. Jonathan the resale value of the van as prescribed by Mr. Joe. Terry pays for repairing of the van to Mr. Joe. Terry pays for van equipment and supplies to Mr. Luigi. Franchise agreement with Mr. Whippy is cancelled. Goodwill from Mr. Luigi business is ignored. Taxes are ignored. License fee is applicable at the same rate for next 10 years. There will be no new competition. There will be no new food regulations. There is no wastage. The demand for ice cream and hot dogs will be stable or growing at steady pace. Sickness or weekends off are ignored. An allowance of Mr. Terry time of 860 hours per year costing at $40 will be considered as cash outflow. Vehicle related expenses are considered to be $2,601, a constant figure, when indicated to be declining in previous years. However, they are extrapolated in the years when increasing based on respective years’ growth rate in these expenses. In the year 4th, 6th and 8th, they are assumed to increase by 22%, 12% and 9% respectively. The figures from Table 4 Col B are considered as base figures. The number of working weekends remains the same i.e. 50. The AAGR for both products are used for estimating future projections. Year / Item 0 1 2 3 4 5 6 7 8 9 10 Purchase Van (2,000) Equipment (1,200) Supplies (50) Repairing Van (2,500) Icecream sales 77,865 77,908 94,039 101,029 92,419 94,401 108,564 107,566 107,704 108,017 Hotdog Sales 43,739 49,609 41,006 38,048 40,323 41,865 39,971 40,315 42,536 45,075 Total Sales 121,604 127,517 135,045 139,077 132,743 136,267 148,535 147,881 150,240 153,092 Cones 3,894 3,896 4,703 5,052 4,622 4,721 5,429 5,379 5,386 5,402 Icecream 4,672 4,675 5,643 6,062 5,546 5,665 6,515 6,455 6,463 6,482 Buns 5,468 6,202 5,127 4,757 5,041 5,234 4,997 5,040 5,318 5,635 Hotdogs 4,374 4,961 4,101 3,805 4,032 4,187 3,997 4,031 4,254 4,508 Vehicle-related payments 2,601 2,601 2,601 3,165 2,601 2,913 2,601 2,835 2,601 2,601 License fees 150 150 150 150 150 150 150 150 150 150 Allowance 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 Total payments 55,560 56,885 56,724 57,391 56,392 57,270 58,089 58,291 58,572 59,178 Net cash flow (5,750) 66,044 70,631 78,320 81,685 76,350 78,997 90,446 89,590 91,668 93,914 Figures are stated in U.S. Dollars terms Table 6: Average Annual Growth Rates Net present value is the total value of cash flows from a project discounted at a suitable interest rate. This is a measurement tool used for predicting whether a project will be successful or not. Time Net Cash flow Discount Factor Present Value Net Present Value 0 (5,750) (5,750) 1 66,044 0.952381 62,898.71 2 70,631 0.822702 58,108.64 3 78,320 0.746215 58,443.92 4 81,685 0.676839 55,287.79 5 76,350 0.613913 46,872.49 6 78,997 0.556837 43,988.60 7 90,446 0.505068 45,681.23 8 89,590 0.458112 41,042.16 9 91,668 0.415521 38,090.12 10 93,914 0.376889 35,395.34 480,059 Figures are stated in U.S. Dollars terms Table 7: Net Present Value Conclusion: The NPV of future cash flow projections is positive which implies that the project may be accepted. They are other factors which Mr. Terry should consider before undertaking this business. Mr. Luigi has been in the business for almost 10 years. There is not much regarding his prior business history but he has done well in icecream and hotdogs selling business as well. Expectation to produce the same result by a teacher is somewhat subjective. Mr. Terry is a retired teacher ad has no prior experience of this business and it is assumed that he is in good health which would surely be an important factor for such business. We have assumed that despite of cancellation of Mr. Whippy franchise, Mr. Terry would be able to create good business for icecream and he would be able to purchase his supplies from a reliable source offering competitive prices. Other assumptions made for the above project evaluation can change hence altering the outcome of the project. Additional item which could be added to the above cash flow projections is tax liability and any financing activity which Mr. Terry may require to finance his initial investments.   We have also ignored the goodwill of business which Mr. Luigi has developed over the years. In accounting terms, a value for goodwill is an asset for business and should therefore be paid for to Mr. Luigi as commented by Mrs. Anita. This will be considered as part of initial investment. However, some may argue that Mr. Terry is not using the same name for his business and assumingly will not using Mr. Luigi goodwill for promoting his own business. It is however, likely f or Mr. Terry to enter this business with small investment and try to serve his customers with the same enthusiasm and strength as Mr. Luigi did for last 10 years. A more accurate projection can be made with further detailed information regarding the market and other issues. Finally, these projections will be adjusted once Mr. Terry actually enters this business. List of References Investopedia- A Forbes Digital Company (n. d.) Average Annual Growth Rate (AAGR). [online] available from www.investopedia.com/terms/a/aagr.asp [30 July 2008]   Ã‚  Ã‚  Ã‚  Ã‚   Tinkerbell hotdogs icecreams – Case Study. Financial Analysis Decision Making

Reverend Hale Essay -- essays research papers

Reverend Hale The Crucible written by Arthur Miller is a play that takes place in the sixteen nineties during the famous but tragic witch trials. Reverend Hale who is a minister and an expert of the demonic arts and witchcraft is sent from East Hanover to Salem where there is a spreading fear of witchcraft. When Hale arrives in Salem he finds the entire town in total chaos. At the beginning Hale is adamant in believing that they’re where witches and that nothing but good could come of his being there. Near the end when the truth has been exposed, Hale with so much blood on his head pleads : ‘‘ I come to do the Devil’s work. I come to counsel Christians they should belie themselves. There is blood on my head! Can you not see the blood on my head!’’ (Miller,131). For Reverend Hale the witch hunt in Salem is the scene of a moral journey as he eventually makes a complete turn around in thoughts and beliefs as he is forced to see certain realities. At the start of Reverend Hale’s metamorphosis he is so sure of himself and of his belief, in witches, that he even inadvertently eases their lying. At this point when he meets Parris and the girls who have been ‘‘ bewitched’’ he encourages them to talk about their being bewitched, and puts some words into their mouths, but he only does this because he really believes in witches, and believes the girls’ stories. This back fires however, and helps the girls with their lies. Soon after the trials begin Hale begins to have doubts in the...

Business Vocabulary Mix Essay

1. Instant messaging- a form of communication in which typed text is sent from one person to another over the internet. 2. Spam- unsolicited electronic junk mail or advertisements, sent as an e-mail 3. Emoticon- an expression composed of ordinary characters on a phone or computer that represent the writer’s mood or facial expressions. 4. Signature- a block of text automatically appended at the bottom of e-mails. The text may include the sender’s name, title, etc. 5. Tagline- a slogan or memorable phrase attached to the end of an email that conveys a message from the sender 6. Threads- a series of newsgroup messages dealing with the same subject. 7. Social Networking- the use of a wav space to connect with people who share personal or professional interests 8. E-mail- a message sent electronically from one person to another via links between computers or terminals 9. Blog- a type of web site that displays in chronological order the postings by one or more individuals and usually has links to comments on specific postings 10. Search Engine Optimization- the process of improving the traffic to a web site from search engines 11. Social Norms- the rules that a society uses for appropriate and inappropriate values, beliefs, attitudes and behaviors 12. Sexting- the act of sending sexually explicit and/or suggestive content via text messaging. 13. Inflection- Modulation of the voice; change in pitch or tone of voice to help convey meaning. 14. Cyber Bullying- when a child or teen is threatened, harassed or otherwise targeted by another child or teen using a form of technology 15. Flaming- a virtual term for venting emotion or sending inflammatory e-mails. 16. Attachments- Computer files sent along with an e-mail message which can be accessed by the recipient of the e-mail. 17. Snail mail- a term used to refer to letters carried by traditional postal delivery services. 18. Texting- sending brief written messages from one person to another via cellular phones.

Potbelly Sandwich Works

â€Å"Potbelly Sandwich Works† Summary: Potbelly Sandwich Works is a privately held restaurant chain that sells submarine sandwiches in the United States. Potbelly Sandwich Works began in 1977 founded by Peter Hastings. The original store is located in Chicago, in a retail space that was previously an antique store, Hindsight, also owned by Hastings. Many of the items that decorate the store were taken from the former business. Despite the fast-paced, never-a-dull-moment world of antique dealing, the couple decided to bolster their business by making sandwiches for their customers. What began as a lark, turned out to be a stroke of genius. Soon, people who couldn't care less about vintage glass doorknobs were stopping by to enjoy special sandwiches and homemade desserts in this unusual atmosphere. Its name is derived from potbelly stoves common in the late 19th century. In 1998, Bryant L. Keil purchased the original store and expanded Potbelly to over 200 stores in Illinois, Indiana Michigan, Minnesota, Ohio, Texas, Maryland, Virginia, Pennsylvania, New Jersey, Washington D. C. , Kentucky, and Wisconsin. When Bryant Keil paid $1. 7 million for Potbelly Sandwich Works in 1996, people thought he was crazy. Convinced he could take the unique sandwich joint to the next level; Keil acquired Potbelly and has since grown the concept into a 10-state chain that posted 2006 revenue of $140 million. Although Potbelly has many sandwich shop rivals and competition in the fierce quick-serve segment of the restaurant industry, Potbelly has more than held its own. Billed as â€Å"a unique and quirky sandwich joint,† it has a unique appeal. Potbelly’s core strategy elements include the 4P’s- Product, Place, Promotion, and Price. As the years passed, the lines grew. Booths were added, along with ovens for toasting sandwiches to perfection, vista-coolers, napkin dispensers, hand-dipped ice cream – even live music. The little antique shop had become the full-fledged, totally unique sandwich joint that you enjoy today. Potbelly’s core strategy elements include the 4P’s- Product, Place, Promotion, and Price. First is the Product. Anyone can sell a sandwich; you need to be able to sell an experience. Industry observers point to several aspects of the Potbelly experience that make it the first choice for young professionals on a quick lunch break. Friendly service and an unbeat atmosphere, live music, antique fixtures, real books for customers to read or borrow create a homey environment for customers. Then there is the Place. Geographic locations are selected carefully. Bryant Keil looks for cities that are not saturated with sandwich chains and have an urban/suburban density of core customers-young professionals less than 35 years old. Locations must be convient for them since Potbelly stores rely on high repeat business. Then there goes Promotion. Promotions are keyed to events like store openings and National Sandwich Day. For example, on National Sandwich Day, Potbelly hosts a â€Å"Belly Buster† sandwich eating contest at Potbelly stores. Prizes are awarded to winners and runners-up. Other event promotions raise money for local charities such as food banks, and community- based reading and music appreciatin programs. Then goes the last P which is Price. Potbelly sandwiches sell for $3. 79. Pricing is an integral part of the value Potbelly offers customers and can be summed up as, â€Å"Just good food at good prices. Considered separately, any one of Potbelly’s marketing strategy elements may not seem overly powerful as a competitive weapon, but combined and implemented with zeal, they are a significant competitive threat to national, regional, and local competitors. The idea behind Potbelly is simple: superior value, fun-filled atmosphere, warm, comfy decor, and quick friendly service.

The Assassination of Archduke Franz Ferdinand 1914

The Assassination of Archduke Franz Ferdinand 1914 The assassination of an Austrian Archduke was the trigger for World War I, yet things were so nearly different. His death set off a chain reaction, as  mutual defense alliances  mobilized a list of countries, including Russia, Serbia, France, Austria-Hungary, and Germany, to declare war.   An Unpopular Archduke and an Unpopular Day In 1914 Archduke Franz Ferdinand was heir to both the Habsburg throne and the Austro-Hungarian Empire. He was not a popular man, having married a woman who – while a Countess – was deemed far below his station, and their children had been barred from the succession. Nevertheless, he was the heir and had both interests in the state and state commitments, and in 1913 he was asked to visit newly annexed Bosnia-Herzegovina and inspect their troops. Franz Ferdinand accepted this engagement, as it meant his usually sidelined and insulted wife would officially be with him. Ceremonies were planned for June 28th, 1914 in Sarajevo, the couple’s wedding anniversary. Unfortunately, this was also the anniversary of the First Battle of Kosovo, the struggle in 1389 which Serbia had convinced itself saw Serbian independence crushed by their defeat to the Ottoman Empire. This was a problem, because many in the newly independent Serbia claimed Bosnia-Herzegovina for themselves, and fumed at Austria-Hungary’s recent annexation. Terrorism One man in particular who took particular umbrage at this event was Gavrilo Princip, a Bosnian Serb had devoted his life to protecting Serbia, no matter the consequences. Assassinations and other politically charged murders were not out of the question for Princip. Despite being more bookish than charismatic, he managed to enlist the support of a small group of friends, who he convinced to kill Franz Ferdinand and his wife on June 28th. It was to be a suicide mission, so they wouldn’t be around to see the result. Princip claimed to have originated the plot himself but he did not have trouble finding allies for the mission: friends to train. The most important group of allies was the Black Hand, a secret society in the Serb army, who provided Princep and his co-conspirators with pistols, bombs,  and poison. Despite the complexity of the operation, they managed to keep it under wraps.  There were rumors of a vague threat that reached all the way up to the Serbian Prime Minister, but they quickly dismissed.   The Assassination of Archduke Franz Ferdinand On Sunday June 28th, 1914, Franz Ferdinand and his wife Sophie traveled in a motorcade through Sarajevo; their car was open topped and there was little security. The would-be assassins positioned themselves at intervals along the route. Initially, one assassin threw a bomb, but it rolled off the convertible roof and exploded against the wheel of a passing car, causing only minor injuries. Another assassin couldn’t get the bomb out of his pocket because of the crowd’s density, a third felt too close to a policeman to try, a fourth had an attack of conscience over Sophie and a fifth ran off. Princip, away from this scene, thought he’d missed his chance. The royal couple continued with their day as normal, but after the display at the Town Hall Franz Ferdinand insisted he visit the mildly injured members of his party in the hospital. However, confusion led to the driver heading to their original destination: a museum. As the vehicles stopped in the road to decide which route to take, Princip found himself next to the car. He drew his pistol and shot the Archduke and his wife at point-blank range. He then tried to shoot himself, but the crowd stopped him. He then took poison, but it was old and simply caused him to vomit; the police then arrested him before he was lynched. Within half an hour, both targets were dead. The Aftermath No one in Austria-Hungary’s government was particularly upset by Franz Ferdinand’s death; indeed, they were more relieved he was not going to cause any more constitutional problems. Across the capitals of Europe, few other people were overly upset, except the Kaiser in Germany, who had tried to cultivate Franz Ferdinand as a friend and ally. As such, the assassination didn’t seem to be a major, world-changing event. But Austria-Hungary had been looking for an excuse to attack Serbia, and this provided them with the cause they needed. Their actions would soon trigger World War I, leading to years of bloody slaughter on a largely static Western Front, and repeated failures by the Austrian army on the Eastern and Italian Fronts. At the end of the war the Austro-Hungarian Empire had collapsed, and Serbia found itself the core of a new Kingdom of the ​Serbs, Croats and Slovenes.    Test your knowledge of the origins of WWI.

History of the 1976 Olympics in Montreal

History of the 1976 Olympics in Montreal The 1976 Olympic Games were marred by boycotts and drug allegations. Before the Olympic Games, New Zealands rugby team toured South Africa (still mired in apartheid) and played against them. Because of this, much of the rest of Africa threatened the IOC to ban New Zealand from the Olympic Games or they would boycott the Games. Since the IOC had no control over the playing of rugby, the IOC tried to persuade the Africans not to use the Olympics as retaliation. In the end, 26 African countries boycotted the Games. Also, Taiwan was excluded from the Games when Canada would not recognize them as the Republic of China. Drug Allegations The drug allegations were rampant at these Olympics. Though most of the allegations were not proven, many athletes, especially the East German women swimmers, were accused of using anabolic steroids. When Shirley Babashoff (United States) accused her rivals of using anabolic steroids because of their big muscles and deep voices, an official from the East German team responded: They came to swim, not to sing. Financial Implications The Games were also a financial disaster for Quebec. Since Quebec built, and built, and built for the Games, they spent the enormous figure of $2 billion, placing them in debt for decades. On a more positive note, these Olympic Games saw the rise of the Romanian gymnast Nadia Comaneci who won three gold medals. Approximately 6,000 athletes participated, representing 88 countries. Source Allen Guttmann, The Olympics: A History of the Modern Games. (Chicago: University of Illinois Press, 1992) 146.

Violence and Its Impact Upon Adolescents Research Paper - 1

Violence and Its Impact Upon Adolescents - Research Paper Example , this can potentially have some very dire effects on them it is critically important to â€Å"establish exactly what is violence, the different forms that adolescent violence can potentially take, and the varied effects of violence on adolescents.† According to The term violence first appeared in French at around the beginning of the thirteenth century and was essentially used to characterize a brutal and quick-tempered person. It was also used to describe to indicate a power relationship that is aimed at constraining or subjecting another person. Over the centuries that followed, violence was given a fundamental role by western civilizations where on one had it was seen to quite fiercely denounce the excesses of violence and openly declared it to be illegitimate, However, on the other hand, Western civilization was also seen to give violence a rather elevated position where it was legitimized so as to validate the actions of knights who were forced to shed blood in the noble defense of the orphans and widows as well as defend the just causes of the Christian kings against the Infidels, and trouble makers (Muchembled 7-9). The brutality of all human relations was accepted as being a universal social language in addition to its being considered to be absolutely normal and quite necessary in most western societies up until the seventeenth century. While cultural ideals might have gradually evolved over time, violence is seen to still play a prominent role in modern society and equally affects people of all ages hailing from the different walks of life. The violence perpetrated against the young people is found to be particularly worrying as it can significantly affect their future development and negatively impact the future human society. The Transactional Model of Development: This development model is seen to greatly emphasize the importance of the roles that are seen to be played by both the environment and the child in the determination of the child’s