Scribd Logo
Upload

Welcome to Scribd!

  • Phuket Beach Excel

    Uploaded by

    keerthana
    37 views1 page
    The document discusses leasing a pub to Planet for 4 years at a lease amount of £2,040,000 per year, incrementing at 5% each subsequent 3 year period. It also discusses constructing a karaoke pub called Phuket Beach with a total capital expenditure of £1,700,000 depreciated over 6 years. Key operating expenses include food and beverage at 25% of sales and other operating expenses at 22% of sales. The cost of capital is calculated at 10.75% based on a cost of debt of 7% weighted at 25% and cost of equity of 12% weighted at 75%.

    Original Description:

    Original Title

    phuket beach excel

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses leasing a pub to Planet for 4 years at a lease amount of £2,040,000 per year, incrementing at 5% each subsequent 3 year period. It also discusses constructing a karaoke pub called Phuket Beach with a total capital expenditure of £1,700,000 depreciated over 6 years. Key operating expenses include food and beverage at 25% of sales and other operating expenses at 22% of sales. The cost of capital is calculated at 10.75% based on a cost of debt of 7% weighted at 25% and cost of equity of 12% weighted at 75%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    37 views1 page

    Phuket Beach Excel

    Uploaded by

    keerthana
    The document discusses leasing a pub to Planet for 4 years at a lease amount of £2,040,000 per year, incrementing at 5% each subsequent 3 year period. It also discusses constructing a karaoke pub called Phuket Beach with a total capital expenditure of £1,700,000 depreciated over 6 years. Key operating expenses include food and beverage at 25% of sales and other operating expenses at 22% of sales. The cost of capital is calculated at 10.75% based on a cost of debt of 7% weighted at 25% and cost of equity of 12% weighted at 75%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    leasing to Planet pub

    lease period 4
    lease amount pa 2040000 can be in this calculation also
    incremented lease payments 3yr 2142000 increment @5% 2142000
    4 yr 2142000

    capital expenditure 770000 (taking lower range)


    depreciation SLM 4

    construct phuket beach's own karaoke pub


    capital expenditure 800000 (taking lower range)
    furniture and fitting 900000
    1700000
    depreciation SLM 6
    annual capital expenditure equal to annual depreciation charged
    food and beverage cost 25% of sales
    other operating expenses 22% of sales
    repairs and maintenance 10000 pa

    cost of capital
    cost of debt 7 0.25
    cost of equity 12 0.75
    ke 10.75

    You might also like