PRESENT VAUE

Present value

Present value

This term equity value El Café, a popular cafe in Nicollet Mall, Minneapolis, Minnesota through a period of many challenges. The aim of this paper is to define the scenario's, explain the recommended solutions and summarize the various concepts discussed in the capital structure of the simulation by answering two questions: why is important for an organization and what impact did WACC WACC on capital budgeting and structure?

The scenario and the recommended solution

Scenario One: El Café is challenged to find adequate funding for two additional stores. The aim was to choose a mix of debt that minimizes ...