Just Eat Food truck

FINANCIAL ANALYSIS
MEGA BHATTARAI

18010160 | Ace-IBS
Executive Summary
In this modern time, many people have busy work schedules and don’t have enough time to cook
food and prefer to eat in restaurants and cafes. This is especially true in case of students and job
holders. Here, the fast food option emerges and many people make use of it. Many workers and
students have limited time to travel for food during the lunch break, and to not have enough time
to go through all restaurant venues near their workplace or college time, many people have busy
work schedules and don’t have enough time to cook food and prefer to eat in restaurants and
cafes.
Many workers and students have limited time to travel for food during the lunch break, and to
not have enough time to go through all restaurant venues near their workplace or colleges. The
lifestyles of the people in the cities are changing and so are their eating habits. In most of the
families in which both spouses are working are which is becoming the norm.
Eating out has become convenient and not just on special occasions. Nepalese have become
more experimental in their taste; they are eager to try new items in the menu. Serving food
through a food truck is a new idea that has never really been implemented in Nepal, but it is
really popular in US and other western countries. 

Company Summary
Our goal as a company is to be number one choice for all the busy people by serving meal that is
handmade, healthy, at the same time highly affordable, from multiple locations.
We have come up with an idea of serving low price & high quality at the same time healthy fast
food options (with changing menus) to students, job holders, and others during the meal times
using the freshest ingredients available. What makes this idea unique is that instead of serving
food from a fixed designated place/restaurant, we serve it through a food truck
Services provided by our food truck
 Providing best and fresh food ingredients 

 Providing quality products in cheaper rates.

 Creating healthy and safe food products.

 Customizable menus

 Changing menus to make the change the taste palate of the customers

 Phone application which gives details about the food safety and locations of the truck

Below is a business plan which is developed with unique set of cash flows for an investment
horizon of 5 years considering a cost of capital of 12% with an initial capital investment of NPR
1 million.
 Year Cash Flow
0 -10,00,00
1 1,30,000
2 2,00,000
3 4,25,000
4 5,00,000
5 6,25,000
Calculation

Cumulative
Year Cash Flow Cumulative C.F Discounted C.F
Discounted C.F
0 -10,00,000 0 -10,00,000 0
1 1,30,000 1,30,000 1,16,071.42 1,16,071.42
2 2,00,000 3,30,000 1,59,438.77 2,75,501.19
3 4,25,000 7,55,000 3,02,506.65 5,78,016.84
4 5,00,000 12,55,000 3,17,759.03 8,95,775.87
5 6,25,000 75,05,000 3,54,641.78 12,50,417.65

 Net Present Value = PV of future C.F – Initial investment

= 12, 50,417.65 – 1000000
= 2, 50,417.65

 Profitability Index = PV of future C.F/ Initial investment

= 12, 50,417.65/1000000
= 1.25

 Payback Period = 3 + [(10,00,000- 7,55,000)/5,00,000]

= 3 + 0.4
= 3.4 years

 Discount Payback Period = 4 + [(10,00,000-8,95,775.87)/ 3,54,641.78]

= 4 + 0.29
= 4.29 years
From the calculation of different financial analysis tools, the following points can be concluded;
1. The Net Present Value (NPV) of the company of five years is 2, 50,417.65 which is
positive. This means the initial investment will be covered within the investment period.
This indicates safety to invest in the project.

2. The Profitability Index (PI) of this project is 1.25. This index is greater than 1 by 0.25
which indicates that the project is profitable by 1.25 and gives a positive return.
.
3. The Payback Period (PBP) is calculated to be around 3.4 years which is within 5 years
and favorable for the investors to invest.

4. The Discounted Payback Period (DPBP) is stated to be around 4.29 years which means
that the initial invest will be recovered within the five years and is safe to invest in the
project.