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TOOTHFAIRY
& C0. PASTRIES

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 TOOTHFAIRY & CO. PASTRIES
THE BUSINESS PROPONENTS: ORGANIZERS AND THEIR CAPABILITIES
AND CONTRIBUTIONS

Mary Christine Campo Kristelle Casas Shaikha Abubakar

GOVERNANCE AND TOP TECHNOLOGY RESOURCE MOBILIZER

MANAGEMENT APPLICATOR AND AND FINANCIAL
PROVIDER BANKER
 INTRODUCTION
The proposed business will be a walk-in pastry shop
that is mainly based on take-out orders. It will have a
variety of pastries to choose from like cakes,
cupcakes, cakepops, macarons, and crinkles. The
owners intend to create a modern day aesthetic
ambiance that can capture a customer’s interest on
baking and pastries. Since it is only for take out
orders, the business owners consider putting up a
coffee table set up outdoor which is available for the
customers if they want to spend more time on idle.
 INTRODUCTION
WHAT
The proposed business will be a walk-in pastry
shop that is mainly based on take-out orders. It
will have a variety of pastries to choose from like
cakes, cupcakes, cakepops, macarons, and
crinkles. The owners intend to create a modern
day aesthetic ambiance that can capture a
customer’s interest on baking and pastries. Since
it is only for take out orders, the business owners
consider putting up a coffee table set up outdoor
which is available for the customers if they want
to spend more time on idle.
WHY
Vision: To create opportunity,
growth, and impact through
sweets.
Mission: To provide the
customer’s cravings for sweets
and aims to provide enough
satisfaction that can serve as your
comfort.
TOOTHFAIRY
HOW
The competing enterprises are other pastry shops
around the city. They are known for their cakes but
prior to our research, all the other competitors are
similar in products. The advantage of our business is
that we offer newly introduced flavors and products
which cannot be offered in these competing
enterprises. The only disadvantage of our business is
that we are fresh in the market and we still have a
long way to go in order to gain the customer’s trust,
but we are confident for our products to be easily seen
in the market for people cannot resist the temptation
for sweets including fresh flavors.
 payback EXPENSES FOR
period CONSTRUCTION 1,500,000
benefit cost MACHINERY
ratio & EQUIP.
investments 800,000

FURNITURE
net present & FIXTURES 150,000
initial rate of value
return INGREDIENTS 80,000
OTHER EXPENSES 1,000,000
INITIAL
INVESTMENT = 3, 530,000
 PAYBACK INITIAL INVESTMENT
PERIOD = 3,530,000

the number of years required to recover the 1

original cast invested.
 NET INTEREST = 15%
PRESENT
VALUE
used in capital budgeting and investment
planning to analyze the profitability of a
projected investment or project.
 NET PRESENT VALUE
767,391.30 895,833.33
963,815.78 702,857.14
488,557.21 +409,090.90

(-3,530,000)
+4,227,545.66
= 697,545.66

- ACCEPTED
 INTERNAL
RATE OF
RETURN
IRR is a discount rate that makes the net present
value (NPV) of all cash flows equal to zero in a
discounted cash flow analysis.

DISCOUNT RATE
= 22% OR 0.22
 723,360.66
798,986.48 3,530,000 < 3,539,238.22
809,392.26
556,561.08 IRR IS DISCOVERED TO BE 22%,
ASSUMING THAT THE COST OF
363,703.70 CAPITAL IS 15%, WE SHOULD
+287,234.04 ACCEPT THE INVESTMENT
SINCE ITS IRR OF 22% EXCEEDS
THE 15% COST OF CAPITAL.
= 3,539,238.22
 DISCOUNTED STREAM OF BENEFITS
BENEFIT COST
RATIO
The benefit-cost ratio (BCR) is a ratio used in a
cost-benefit analysis to summarize the overall
relationship between the relative costs and
benefits of a proposed project.

DISCOUNT RATE
= 15% OR .15
=4,227,545.67
 DISCOUNTED STREAM OF COST

BENEFIT
COST RATIO
The benefit-cost ratio (BCR) is a ratio used in a
cost-benefit analysis to summarize the overall
relationship between the relative costs and
benefits of a proposed project.

DISCOUNT RATE
= 15% OR .15
=1,383,649.87
DISCOUNTED
STREAM OF
BENEFITS 4,227,545.67 THEREFORE,
DISCOUNTED THE BENEFIT COST RATIO
STREAM OF OF TOOTHFAIRY & CO.
COST 1,383,649.58 PASTRIES IS 3.05 AND IT’S
GREATER THAN 1.0, THE
PROJECT IS EXPECTED TO
DELIVER A POSITIVE NET
= 3.05 PRESENT VALUE TO A
BUSINESS AND IT’S
INVESTORS
 CONCLUSION
PAYBACK
PERIOD
the Payback Period of
Toothfairy & Co. Pastries is
three (3) years since the
cumulative income at the end
of 3 years were equals to the
initial investment of the
company.
NET
PRESENT
VALUE
The project Net Present
Value is 697,545.66 is
greater than zero (0) so we
decided to accept the
Project because at the
interest of 15% it will
generate revenue
INTERNAL
RATE OF
RETURN
IRR is 22% of Toothfairy
& Co. Pastries and is
greater than cost of capital
15%. At this rate the
company could earn, so,
the project is accepted.
BENEFIT COS
RATIO
The Benefit Cost Ratio of
Toothfairy & Co. Pastries is
3.05 and it’s greater then
1.0, the project is expected
to deliver a positive Net
Present Value to a business
and it’s investors
INTERPRETATION
AND DECISION According to our calculation, the payback period of our business,
the Toothfairy & Co. Pastries is 3 years since the cummulative
income at the end of 3 years is equal to the our initial investment
of our company. so meaning, it will only take 3 years for our
investment to return. The project Net Present Value is 697,546.66,
and it is greater than zero (0) so we decided to accept the project
because at the interest of 15% it will generate revenue Our IRR or
Internal Rate Revenue is 22% and it is greater than cost of capital
15%. at this rate, the company could earn so the project is
accepted. The Benefit Cost Ratio or BCR is 3.05 and it's greater
than 1.0 , the project is expected to deliver a positive Net Present
Value to a business and it's investors. We believe that our business,
The Toothfairy & Co. Pastries has a high potential to succeed and
to achieve its goal' which is to provide customer's cravings for
sweets and aims to provide enough satisfaction that can serve as
your comfort.
 DIGITAL MARKETING

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NEW YORK, CITY ROSE
BLVD 143

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