In this assignment, please show all work, including formulae and calculations used to arrive at financial values. You must answer the following: Using the information in the assignment description: Prepare a capital budget for the Hot New Cafe with the net cash flows for this project over a 5-year period. Calculate the payback period (P/B) and the net present value (NPV) for the project. Answer the following questions based on your P/B and NPV calculations: Do you think the project should be accepted? Why? Define and describe Net Present Value (NPV) as it pertains to the new cafe. Define payback period. Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years. Do you think the project should be accepted? Why?
