The Gravy TruckPOUTINERIE ON WHEELS

Who We AreWhat is The Gravy Truck?

Products

PriceCompetitive Pricing

Poutine ranges from $5.50 to $11Fresh cut fries range from $3.00 to $6.00Beverages cost $2.00 - $3.00Estimated average purchase (Year 1): $10.00

Promotion

Promotion

Profitability

Year 1 Year 2 Year 3 Year 4 Year 5

-4,1396,544

17,62529,066

40,984

Net Income

FeasibilityYear 1 Year 2 Year 3 Year 4 Year 5

Owners’ Salary 60,000 61,500 63,038 64,613 66,229

Dividends - - 15,688

Total Owners’ Compensation

60,000 61,500 63,038 64,613 81,917

Critical Variables

Ride with us on the Gravy Truck!

Capital Budget

Capital Budget 2015

Grumman Step Van and Conversion 33,200

Kitchen Equipment 38,860

Computer Equipment 1,740

Total Capital Budget 73,800

Financial Budget2015

Bank debt 54% 40,000

Equity Investment 46% 33,800

Total 73,800

Cash Flows

Cash Flow Statement

For the year ended 2015 2016 2017 2018 2019

Net Cash Flow (7,075) 226 10,757 21,780 17,571

Cash Bal Beg of Year (7,075) (6,849) 3,908 25,688

Cash Bal End of Year (7,075) (6,849) 3,908 25,688 43,259

Break-Even Analysis

1 2 3 4 50

20

40

60

80

100

120

140

80

96 106116

128

84

90 85 82 79

Year

Num

ber

of C

usto

mer

s pe

r da

y

NPV = $30,654

IRR = 36.3%

Average 5 year Net Income = $18,016

Sensitivity AnalysisCustomers Per Day Average 5 year Profit Net Payback IRR

60 $(5,140) $(28,367) -22.7%

65 $1,425 $(10,116) -3.3%

70 $7,089 $31,093 9.9%

75 $12,606 $78,277 23.6%

80 $18,016 $124,924 36.3%

85 $23,263 $170,758 48%

Sensitivity AnalysisAverage Purchase Average 5 year Profit Net Payback IRR

$8.50 $4,823 $12,712 4.1%

$9.00 $9,355 $50,261 15.6%

$9.50 $13,688 $87,606 26.2%

$10.00 $18,016 $124,924 36.3%

$10.50 $22,225 $161,649 45.7%

$11.00 $26,377 $198,087 54.7%

Risk Factors

# of customers per day most critical Location planning and execution Average purchase price Increase in competition Weather conditions Ineffective marketing activities