000‚000 = $5‚150‚943 f. $4 million investment PV = $5‚400‚000/(1+0.06)1 = $5‚094‚340 Virginia’s optimal investment in the restaurant is $3 million‚ which give her a total of $5‚150‚943 at the end of year 1. This is approximately a 29% increase in her wealth. 3. PV of investment with $2.8m borrowed FV = Restaurant Future Cash flows – [Principle(1+0.06)] = $4‚400‚000 – [$2‚800‚000(1.06)] = $4‚400‚000 - $2‚968‚000 = $1‚432‚000 PV = $1‚432‚000/1.06 = $1‚350
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Brandon Taylor MGT 301-701 Remo Picchietti McDonalds in China 1. Assume a Big Mac is $3 in the U.S. How much would the Big Mac cost in China? At the time of the article‚ “McDonalds to Double China Restaurants by 2013‚” 1 Yuan is 8 to 15 cents. So‚ a Big Mac at the time of the article would cost 20 to 37.5 Yuan. However‚ at the current time‚ according to The Money converter.com‚ a Big Mac‚ costing $3‚ would be 19.10 Yuan Renminbi (USD to CNY). 2. Conduct some research. Identify at least one difference
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Since most McDonalds have the same menu‚ it provides an easy economy of scale. McDonalds has more than 32‚000 restaurants around the world (Economies of scale). When McDonalds places an order‚ they don’t go and buy individual items‚ they receive them from a local wholesaler just like any other independent restaurant (Economies of scale). “McDonald’s is the world’s largest buyer of eggs; therefore they are able to negotiate the very best unit cost per egg during their enormous volume purchase and
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Analysis on the McDonalds advertisement We have recently been studying the McDonalds advertisement where they have stated that they are helping Aussie families and the future sports stars of tomorrow. They tell us that they are hand in hand with Australian families‚ but they only say that because they want more families to go to their local McDonalds store. But are they really helping the sports stars. Yes of course they are but they aren’t really helping out as much as they say. Yeah they do
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Market analysis for McDonalds and KFC The long journey of the burger brand started in 1940‚ when two brothers‚ Dick and Mac McDonald opened the first McDonalds restaurant in San Bernardino‚ California. Initially‚ they owned a hotdog stand‚ but after establishing the restaurant they served around 25 items‚ which were mostly barbequed. It became a popular and profitable teen hangout. In 1948‚ the brothers closed and reopened the restaurant to sell only hamburgers‚ milkshakes and French fries. Nowadays
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Date: August 23‚ 2010 To: Professor Kopka From: Veronica Salas Subject: Strategic Analysis for McDonalds EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS External Analysis There are two conditions that are most significant in McDonald’s external environment that are: 1. The new trend in which customers are changing fast –food restaurants to healthier ones. 2. The arising competition to achieve growth in this industry. The fast-food industry is very complex and saturated. The key
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Corporation McDonalds Corporation is a centralized International company which operates in the fast food industry supplying hamburgers‚ french fries and other consumable items using standardization‚ heavy expansion and branding as the driving force. McDonalds operates in over 121 countries and has over 30‚000 restaurants worldwide serving over 52 million customers a day. Its development from a drive-in restaurant in San Bernardino‚ California‚ to famous fast food chain restaurants of the world was
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I. First Restaurant The first fast food restaurant is called “White Castle” that was found in 1921 in Wichita‚ Kansas. The reason for this production is because customers use to complain that the burgers sold at fairs‚ circuses‚ and lunch counters were low-quality. People thought that burger meat came from slaughterhouse scraps and spoiled meat. So the founds of White Castle decided to change the public’s perception of hamburgers. They built their restaurants so that customers could see their food
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MARKETING ACTVITIES SEMESTER 1‚ 2012 ASSIGNMENT 1 Company Chosen: McDonald’s Industry: Hospitality Founded: May 15 1940 Founder: Richard & Maurice McDonald Headquarters: Oak Brook‚ Illinois‚ US No. of Locations: 30000+ Worldwide Area Served: Worldwide Products: Fast Food P.E.S.T Analysis Political Factors The individual operations of McDonalds are influenced by the individual state and country policies by each government. E.g. there are certain some states in Europe and the US wont allow fast
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HOW IS IT FUNDED? IT WAS FUNDED BY DONATIONS‚ SENIOR CONNECTIONS‚ ALSO HAS FEDERAL FUNDING 501 C‚ ALSO BY WRITING GRANTS TO LARGE CORPORATIONS. 3. WHAT OTHER AGENCIES DO YOU HAVE FORMAL LINKAGE WITH? SENIOR CONNECTIONS‚ RBHA AND WELLNESS GROUP‚ SACRED HEART CENTER‚ VA. ADULT DAY SERVICES ASSOCIATION‚ EPHESUS JUNIOR ACADEMY‚ FIRST BAPTIST CHURCH OF SOUTH RCHMOND‚ AND
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