You Make the Call-Situation 2

question 66

Essay

You Make the Call-Situation 2
Alibek Iskakov has opened a small café named Oasis in Kokshetau, a city in Kazakhstan. In order to get primary data on the market for his café, he conducted a survey of 100 people-45 men and 55 women. Forty-eight respondents were between 18 and 24 years old, 38 were between 25 and 50 years old, and 14 were over 50 years old. The survey asked the following questions:
1.How often do you visit restaurants?
2.What is your favorite restaurant in Kokshetau? Why?
3.What is the most important factor for you in choosing a restaurant?
4.Would a small, neat café with traditional food appeal to you?
a. (If no) Why not?
b. (If yes) When would you patronize it?
5.How much are you willing to pay for dinner?

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Definitions:

Negative NPV

A situation where the net present value (NPV) of a project or investment is less than zero, indicating it is expected to lose money.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Present Value Of Capital

The present worth of a future amount of money or series of cash inflows based on a given rate of return.

Financial Analysis

The evaluation of businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.