Investment NPV

(in Thousand Rs) (in Thousand Rs)

Juice & Shakes 10 40
Burger 6 30
Pav-bhaji 15 50
Fried Rice 20 60
Sandwich 12 20
Strategy
1- Since regural payment is max in pav Bhaji and fried rice
2-These two should definitely be a part of menu
3-The only other option that can be added is burger
Solution
1- Since pav bhaji has a payback period of just 3 weeeks , after three weeks for the next 2 weeks when fried rice will be giving back the investments
Pav bhaji will be producing prfofits so effective payback for the two will be less than 5 weeks
PAV BHAJI + FRIED RICE +BURGER
Product/Criterion
Payback PMT 1 2 3
(Weeks)
10% Low V Good 6 9.18 9.18 9.18 9.18
12% Low Good 4 9.88 9.88 9.88 9.88
15% High
Excellen
t
3
21.90 21.90 21.90 21.90
20% Medium Poor 5 20.06 20.06 20.06 20.06
12% Medium Good 6 4.86 4.86 4.86 4.86
1- Since pav bhaji has a payback period of just 3 weeeks , after three weeks for the next 2 weeks when fried rice will be giving back the investments
IRR Risk Growth
4 5 6
9.18 9.18 9.18
9.88 9.88 9.88
21.90 21.90 21.90
20.06 20.06 20.06
4.86 4.86 4.86