Problem 5 Business Name Square Feet Required Expected Monthly Cash Flow Videos N
ID: 2457539 • Letter: P
Question
Problem 5
Business Name
Square Feet Required
Expected Monthly Cash Flow
Videos Now
4,000
70,000
Gords Gym
3,500
52,500
Pizza Warehouse
2,500
52,500
Super Clips
1,500
25,500
30 1/2 Flavors
1,500
28,500
S-Mart
12,000
180,000
WalVerde Drugs
6,000
147,000
Multigular Wireless
1,000
22,250
Business Name
Square Feet Required
Expected Monthly Cash Flow
Videos Now
4,000
70,000
Gords Gym
3,500
52,500
Pizza Warehouse
2,500
52,500
Super Clips
1,500
25,500
30 1/2 Flavors
1,500
28,500
S-Mart
12,000
180,000
WalVerde Drugs
6,000
147,000
Multigular Wireless
1,000
22,250
The Timeline We begin our look at valuing cash flows lasting several periods with some basic vocabulary and tools. We refer co a series of cash flows lasting several periods as a stream of cash flows. We can represent a scream of cash flows on a timeline, a linear representation of the timing of the expected cash flows, Tirmeline are an important first step in organizing and then solving a financial problem. We use them throughout this text. To illustrate how to construct a timeline, assume that a friend owes you money. He has agreed to repay the loan by making two payments of $10,000 at the end of each of the next two years. We represent chis information on a timeline as follows:Explanation / Answer
When we are leasing the space , ourobjective should be to maximise the cash flows from activities I,e from rentals aswell as a percentage from sales . The maximum Cash inflows are from S-Mart. Hence , lease 12000 Sq .Feet to S -Mart The remaining 3000 Sq Feet can be dividedequally between Super Clips & 301/2flavors. This would optimise Cash Flowa fromactivities.
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