Professional Documents
Culture Documents
BUSINESS PLAN ON
McDonalds Franchise (Bangladesh)
Prepared For:
Dr. Md.MahfuzAshraf
Lecturar, EMIS Department, Dhaka University
EMIS-501: Introduction to Business
Prepared By:
Abeda Sultana: 61119-12-024
Helal Uddin Khan: 61119-12-041
Mohibul Hasan: 61119-12-029
Nazia Akter: 61119-12-028
Nur-A-Sayed: 61119-12-008
Date of Submission: 12th April, 2011
2 | Page
Executive Summery
The project business plan on McDonalds Franchise (Bangladesh) will mainly emphasize
on fast food culture and distribution of fast food in the local market as well as to the general
people. Our vision is to be the worlds best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness and value, so that we can make
every customer in every restaurant smile. Our mission is to be the best employer, deliver
operational excellence, achieving enduring profitable growth expanding the brand and
leveraging the strength of our system through innovation and technology. Our main
uniqueness of the service will be to provide breakfast category and others in our menu with
moderate price and high quality.
However, the project will be operated in small scale but all this units will be performing
satisfactorily as plannned. The prime promoters of McDonalds Franchise (Bangladesh) will
be Abeda Sultana, HelalUddin Khan, Mohibul Hasan, Nazia Akter and Nur-A-Sayedi, it will
be owned and managed by the partners of the firm. General and limited partnership policy
will be followed that is, all the partners of the firm will get limited liability that is, who are
liable for loss only upto the amount of their investment. Here we will follow DEED OF
PARTNER SHIP AGREEMENT. McDonalds Franchise (Bangladesh) will have a very
sound list of qualified and skilled work force in the related position. It will consist of
accounts manager, technical manger, marketing manager, finance manger, administrative
consultants and employees etc.
We have planned to take the financial assistance of two banks: Standard Chartered Bank and
HSBC Bank Bangladesh. We have targeted young generation as our main consumers thats
why we have selected Gulshan-1 as our restaurant location surrounded by several college and
universities. We will use some technology based equipment which will be imported from
foreign countries. We have already analyzed that, the business we are going to conduct are
not ecologically harmful. Our contribution towards economy will be employing number of
unemployed but efficient people that can make an effective contribution towards the action of
removing unemployment
3 | Page
TABLE OF CONTENTS
Page No.
Executive Summary.....................................................................................................................
PART 1
06
INTRODUCTION..........................................................................................
..........................................................................................................................
1.1
About the Business Plan........................................................................
1.2
Objectives of the Business Plan.............................................................
1.3
Methodology Used................................................................................
1.4
Limitations............................................................................................
1.5
Scope.....................................................................................................
06-
PART 2
08
BUSINESS INTRODUCTIONS....................................................................
07-
2.1
2.2
2.3
2.4
2.5
PART 3
11
MANAGEMENT ASPECTS..........................................................................
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
PART 4
16
The Promoters.......................................................................................
Share Holding of the Owners................................................................
Summery of Qualification.....................................................................
Legal form of Business..........................................................................
Banks.....................................................................................................
Insurance Company...............................................................................
HR Management...................................................................................
Staffing Needs.......................................................................................
Staff Planning........................................................................................
TECHNICAL ASPECTS................................................................................
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
09-
12-
Manufacturing Process/Technology......................................................
Material Inputs & Utilities.....................................................................
4.2.1
Utilities...................................................................................
4.2.2
Raw materials.........................................................................
Product Mix...........................................................................................
Machineries & Equipment.....................................................................
Environment..........................................................................................
Plant Capacity.......................................................................................
Schedule of Project Implementation......................................................
Location & Site.....................................................................................
Project Chart & Layout.........................................................................
4 | Page
PART 5
22
MARKETING ASPECTS..............................................................................
5.1
5.2
5.3
5.4
5.5
5.6
PART 6
29
PART 7
FINANCIAL ASPECTS.................................................................................
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
17-
23-
SOCIAL ASPECTS
7.1
Environmental impact of project...........................................................
7.2
Contribution towards the economy........................................................
7.3
Social cost benefit analysis....................................................................
APPENDIX
A. Formula Used.............................................................................................
B. References ................................................................................................
5 | Page
PART-1
INTRODUCTION
1.1 About the Business Plan
This business plan is based on McDonalds Franchise (Bangladesh); we are assigned to do
this business plan by our respective instructions Dr. Md. Mahfuz Ashraf, Lecturer,
Department of Management Information System, University of Dhaka for the Introduction to
Business Course.
In this business plan we have focused on proposed McDonalds Franchise business in our
country. Its advantage, potentiality, barriers in this sector, further measures to make it more
effective in our country.
1.2 Objectives of this Business Plan
The main objective of the study is to present our gathered practical knowledge to start a
business which is McDonalds Franchise (Bangladesh). This practical orientation gives us a
chance to co-ordinate out theoretical knowledge with the practical knowledge. The following
are of objective for this practical orientation about McDonalds.
Knowing the aspect and potentiality of McDonalds into our country.
A short view on the important elements needed for starting the business.
The effective and efficient measures to provide healthy and hygienic food to the
people of Bangladesh.
1.3 Methodology used
To prepare this business plan, standard method of report writing has been used. Different
types of data were needed to complete, and analyzed. The required data collected by using
both primary and secondary sources. For collecting data from primary sources, interviews
and questionnaire method were used. The collecting data from secondary sources we used
prospectors, newspapers, internet etc. After completion of data, these were sort out into
different category. Through the report, these data were analyzed by using standard statistical
methods. Moreover, because of this analysis the finding of the report is made.
1.4 Limitations
In the full course for report writing, the researches have gone through several limitations.
They are:
Time for writing report was limited.
Lack of experience.
Time limitation.
1.5 Scope
The business plan covers The description of our business idea.
Introduction of our company and services.
6 | Page
BUSINESS INTRODUCTION
2.1 General description of the Venture:
McDonalds Franchise (Bangladesh) is the shining light that will show the way to future of
hygienic fast food in Bangladesh as well as aimed to introduce a new era in this sector. To
curve the path for a better service we have taken the initiatives to establish a fast food
restaurant that will provide healthy food to the people of this country. It will be a partnership
firm with equal amount of share of the five owners according to the partnership act 1932.
We will launch as a new venture of organization. It will be well equipped with the latest
machineries and equipment from China. Raw materials such as coffee will be imported from
Germany and beef, chicken, vegetables will be collected from domestic market.
2.2 Facts about the McDonald's Franchise System
McDonald's has been a franchising company since 1955 and has relied on its franchisees to
play a major role in the system's success. McDonald's remains committed to franchising as a
predominant way of doing business. Today, the McDonald's franchise is the leading global
foodservice retailer with more than 30,000 restaurants, located in more than 100 countries.
If anyone considers of buying a McDonald's franchise will most likely have to buy an
existing franchise restaurant. Most franchisees enter the system by purchasing an existing
restaurant, either from McDonald's or from a McDonald's franchisee. A very small number of
new operators enter the system by purchasing a new restaurant.
2.3 Financial Requirements
An initial down payment is required when purchasing a new restaurant (40% of the total cost)
or an existing restaurant (25% of the total cost). The down payment must come from nonborrowed personal resources, which include cash on hand; securities, bonds, and debentures;
vested profit sharing (net of taxes); and business or real estate equity, exclusive of personal
residence.
Since the total cost varies from restaurant to restaurant, the minimum amount for a down
payment will vary. Generally, you need a minimum of $300,000 of non-borrowed personal
resources to be considered to open a McDonald's franchise. Individuals with additional funds
may be better prepared for additional or multi-restaurant opportunities which McDOnald's
encourages.
2.4 Other Requirements
7 | Page
Rapid growth - Individuals who possess the capability to grow rapidly with McDonald's.
Achieve enduring profitable growth by expanding the brand and leveraging the strengths
of the McDonald's system through innovation and technology.
8 | Page
9 | Page
PART-3
MANAGEMENT ASPECTS
3.1 The Promoters:
Our project will be the brainchild of five Promoters:
Abeda Sultana
HelalUddin Khan
MohibulHasan (Nayan)
NaziaAkter (Nazi)
Nur-A-Sayed
3.2 Share Holding of the Owners:
Our total capital is BDT. 27000,000.
Our owners are invested equally
Owners Name
Equity Amount in Taka
Abeda Sultana
HelalUddin Khan
Mohibul Hasan
NaziaAkter
Nur-A-Sayed
Total
20.0%
20.0%
20.0%
20.0%
20.0%
100%
54,00,000
54,00,000
54,00,000
54,00,000
54,00,000
270,00,000
Nazia Akter
Nur-A-Sayed
Qualification
MBA in MIS
B.Sc in Electrical and
Electronic Engineering
MBA in MIS
MBA in MIS
BSc in ETE(Electronics &
Telecommunication
Engineering)
MBA in MIS;
B.Sc in Computer Science
and Engineering
MBA in MIS
Marketing Department
Management
Finance Department
MIS Department
10 | P a g e
their. The partner of firm will based on the written contract and is duly signed by all the
partners of the. So by law the firm will be operated and managed by the Article of Partnership
of the Partnership Act- 1932.
3.6 Banks:
The partners of the firm are solvent and they have got property and liquid cash. After that
they will need financial support from the financial institutions. The management of the firm
selected two banks for submitting the proposal of business and feasibility study. Our banks
are:
Standard Chartered Bank
52/7 Dilkusha road, Motijhil.
Dhaka, Bangladesh.
HSBC Bank Bangladesh
Dhanmondi, House no. 352 (old),
Road no. 27 (old). Dhaka, Bangladesh.
3.7 Insurance Company:
For the purpose of business inside the country McDonalds needs insurance for its property
and business. For this purpose we have planned to take an insurance policy from
United Insurance company
22 KaziNuzrul Islam Avenue
Dhaka 1000, Bangladesh.
Phone- 8619336-8.
3.8 HR Management:
HR management is an important part of a business report in management sector. In our
business we will employ several employees for different purpose. Stuff will be maintained
and operated properly for the betterment of the business. HM management includes some
stuffing need, stuffing planning and budget of the stuffs.
3.8.1 Staffing Need:
Stuffing need will affect a lot to continue our business. We can show our stuffing need in two
different ways. There will be a stuffing need in establishing the business primary steps, and
then we will need stuffs to continue our restaurant. So it can be shown in two different ways:
Current stuffs.
Future stuffs.
Sl. No
Designation
Current Staff
Required Staff
1.
Manager
5
5
2.
Floor Manager
0
1
3.
Crew Member
0
17
Note: Crew Member includes 10 waiter, 5 delivery boy & 2 staff.
11 | P a g e
12 | P a g e
PART-4
TECHNICAL ASPECT
4.1 Manufacturing Process/Technology:
Suppliers
Coffee
Beef
Chicken
Vegetables
13 | P a g e
14 | P a g e
Quantity
10
5
3
15 | P a g e
4
5
Air-condition
Television
3
2
16 | P a g e
Sweet Tea
MUM Water
Diet Coke
Sprite
Coke
17 | P a g e
18 | P a g e
4.9.2
Restaurant layout:
PART - 5
MARKETING ASPECT
19 | P a g e
Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects
their values. The customers expect the brand to enhance their self-image. Customer
responses obtained at the Vile Parle, Mumbai outlet confirmed the fact that they connect
strongly with the brand. However, fulfilling some of the customer expectations like a broader
product variety provide McDonalds a great scope for improvement.
20 | P a g e
S tro n g B ra n d
L o w d e p th a n d w id th o f p ro d u c t
ES xt rp ea nn dg it nh t o T i e r 2 a n d t i e r 3
C h a lle n g in g c u s to m e r life c y c le
WcaP inr t odi eed tsuaa csktt ie on n e I sn sn o v a t i o n
OISC n uu c pps r tpeopla mi soe ere rdrI tnIcunt oe tngmi mri aptatlyiceoyt ni t i o n f r o m
El o n c t a r ly f ia n s t t o f ob or ed a ok uf at ls et t cs a l ti ek ge o r y
ju m b o k in g
T h re a t
5.2.3 Competitor Analysis:
McDonalds has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has
other competitors eating away into its market share. In addition to its traditional rivalsKFC,
Dominos, Pizza Hutthe firm encounters new challenges. Jumbo King competes using a
back-to-basics approach of quickly serving up burgers for time-pressed consumers. On the
higher end, the KFC has become potent competitor in the quick service field, taking away
customers from McDonalds. Perhaps in the new environment, fast, convenient service is no
longer enough to distinguish the firm. At this time, a new critical success factor may be
emerging: the need to create a rich, satisfying experience for consumers.
5.3 MARKETING MIX ANALYSIS:
After segmenting the market, finding the target segment and positioning itself, each company
needs to come up with an offer. The 5Ps used by McDonalds are:
1. Product
2. Place
3. Price
4. Promotion
5. People
Product:
21 | P a g e
Marketing
Engineering
Scalable
Possible & Feasible
& Distributable
Product Success
Design
Product is the physical product or service offered to the consumer. Product includes certain
aspects such as packaging, guarantee, looks etc. This includes both the tangible and the nontangible aspects of the product and service.
Place & distribution channels:
The place mainly consists of the distribution channels. It is important so that the product is
available to the customer at the right place, at the right time and in the right quantity. Nearly
50% of U.S.A is within a 3 minute drive from a McDonalds outlet.
Pricing strategy
Quality
Low
Price
Low
High
Economy
Penetration
Skimming
Premium
High
22 | P a g e
McDonalds has certain value pricing and bundling strategies such as happy meal, com bo
meal, family meal etc to increase overall sales volumes.
Promotion Strategy:
Advertizing
Personal
Selling
Sales
Promotion
Public Relation
Direct Marketing
The various promotion channels being used by McDonalds to effectively communicate the
product information are given above. A clear understanding of the customer value helps
decide whether the cost of promotion is worth spending. There are three main objectives of
advertising for McDonalds are to make people aware of an item, feel positive about it and
remember it.
People and Motivation
McDonalds understands the value of both its employees and its customers. It understands the
fact that a happy employee can serve well and result in a happy customer.
McDonald continuously does Internal Marketing. This is important as it must precede
external marketing. This includes hiring, training and motivating able employees. This way
they serve customers well and the final result is a happy customer. The level of importance
has changed to be in the following order:
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
The punch line Im loving it is an attempt to show that the employees are loving their work
at McDonalds and will love to serve the customers.
23 | P a g e
24 | P a g e
25 | P a g e
PART-6
FINANCIAL ASPECTS
6.1 Cost of the project:
McDonalds Corporation (Franchise-Bangladesh)
Cost of the project
Cost of the project
Land and land development:
Land purchasing cost (20 decimal @ 2, 45000)
Land development
Building and civil works:
Building (5 in number, total 40,000 sq. ft. @ 130)
Civil works and constructing (5 in number, total 40,000 sq. ft. @ 45)
Plans and machineries:
Plant heat exchanger
STP plant
CIP plant
In line dosing
Heating plant
Tank farm
Small volume mixing system
Valve matrix for mixing
Other costs:
Official equipment and furniture
Preoperative expanses
Working capital
Total
Tk.
4,900,000
350,000
5,200,000
1,800,000
500,000
550,000
430,000
200,000
620,000
500,000
250,000
575,000
500,000
500,000
3,76,90,000
5,45,65,000
Tk.
33,000,000
27,000,000
55:45
_
16%
26 | P a g e
Short-term
Loan period:
Long-term
Short-term
Installment paid (long term)
15%
5 years
1 month
Annually
2015
3,25,75,000
80,000
20,000
25,000
70,000
10,000
3,27,80,000
Working capital will be financed 60% by short-term loan for each month @ 15%, 3
times in year.
6.4 Schedule for cost of production:
Particulars
Capital
utilized
Production
(per/ year)
Per kg. raw
material
price(tk.)
Raw
materials
(tk.)
Add. Labor
cost (tk.)
Factory
over-head
Depreciation
Maintenance
Supervisor
salary
Utilities
Total
2015
70%
40,000 kg.
50,000 kg.
60,000 kg.
70,000 kg.
80,000 kg.
85,000
85,000
85,000
85,000
85,000
3,75,25,000
2,80,75,000
2,95,63,00
0
3,05,10,000 3,25,75,00
0
50,000
65,000
70,000
75,000
80,000
15,87,500
25,000
20,000
15,87,500
25,000
20,000
15,87,500
25,000
20,000
15,87,500
25,000
20,000
15,87,500
25,000
20,000
60,000
60,000
65,000
65,000
70,000
27 | P a g e
production
cost (tk.)
29,26,75,00
0
29,26,75,00
0
31,32,55,0
0
322,77,500
343,47,500
Particulars
Selling
cost
per/kg. (tk.)
Cost per/kg. (tk.)
Profit per/kg (tk.)
% of profit
2015
1,52,000
75,000
77,000
50.65%
1,85,000
85,000
100,000
54.05%
160,000
75,000
85,000
53.13%
170,000
79,000
91,000
53.53%
180,000
82,000
98,000
54.44%
Particulars
Yearly
production
Selling price
per/kg (tk.)
Sells revenue
(-) cost of
production
Gross profit
(-)
operating
expanses
Administrative
Selling exp EBIT
(-)
nonoperating exp:
Interest on long
term loanInterest
on
short loanPreliminary
exp. Write offEBT
(-) Tax @ 40%
2015
40,000 kg.
50,000 kg.
60,000 kg.
70,000 kg.
80,000 kg.
152,000
152,000
152,000
152,000
152,000
608,00,00,000
2,92,67,500
760,00,00,000
2,98,32,500
912,00,00,000
3,13,25,500
1064,00,00,000
3,22,77,500
1216,00,00,000
3,43,47,500
605,07,32,500
757,01,67,500
908,86,74,500
1060,77,22,500
1212,56,52,500
31,89,000
2,00,00,000
31,89,000
2,00,00,000
31,89,000
2,50,00,000
31,89,000
2,75,00,000
31,89,000
3,00,00,000
603,04,13,600
754,69,78,500
906,04,85,500
1057,70,33,500
1209,24,63,500
47,99,414
55,67,320
64,58,251
74,91,571
86,82,445
101,76,300
103,28,850
107,33,310
109,90,350
115,50,600
20,00,000
20,00,000
20,00,000
20,00,000
20,00,000
601,34,37,886
240,53,75,154
752,90,82,330
301,16,32,932
904,12,93,939
361,65,17,576
1055,65,51,579
422,26,20,632
1207,02,30,460
482,80,92,184
28 | P a g e
Net
income
360,80,62,732
after tax
451,74,49,398
542,47,76,363
633,39,30,947
724,21,38,276
An increase in yearly production (25%, 50%, 75%, 100% ) and sales revenue
(25%, 50%. 75%, 100% ) resulting an increase in gross profit as well as net
income after tax.
6.7 A-Loan Amortization Schedule:
Loan amount = A * PVIFA (n-5, r-16%)
PVIFA = 3.274 (form the table)
Yea
r
1
2
3
4
5
Remaining
balance
(1-4=5)
182,00,587
226,32,267
161,74,016
86,82,445
0
Assets
Land
Building
Equipment
plant
Total
15,87,500
C- Administrative expenses:
Particulars
Salary
expenses
Office
supplies
Depreciation
Office utilities
Others
Total
2015
29,40,000
24,000
24,000
24,000
24,000
24,000
45,000
120,000
60,000
31,89,000
45,000
120,000
60,000
31,89,000
45,000
120,000
60,000
31,89,000
45,000
120,000
60,000
31,89,000
45,000
120,000
60,000
31,89,000
29 | P a g e
2015
14.47%
6.93 times
28.30%
181.19%
27.19%
26.47%
2012
2013
2014
2015
282,00,587
55,67,320
226,32,267
64,58,251
161,74,016
74,91,571
86,82,445
86,82,445
226,32,267
161,74,016
86,82,445
270,00,000
757,01,67,500
270,00,000
908,86,74,500
270,00,000
1060,77,22,500
270,00,000
1212,56,52,500
761,97,99,767
913,18,48,516
1064,34,04,945
1215,26,52,500
6089845587
7605299767
9118936016
10632079945
12142915000
608,98,45,587
760,52,99,767
911,89,36,016
1063,20,79,945
1214,29,15,000
36,25,000
362,500
52,50,000
525,000
70,00,000
700,000
20,00,000
36,25,000
725,000
52,50,000
10,50,000
70,00,000
14,00,000
20,00,000
36,25,000
10,87,500
52,50,000
15,75,000
70,00,000
21,00,000
20,00,000
36,25,000
14,50,000
52,50,000
21,00,000
70,00,000
28,00,000
20,00,000
36,25,000
18,12,500
52,50,000
26,25,000
70,00,000
35,00,000
20,00,000
200,000
200,000
200,000
200,000
200,000
30 | P a g e
written off
Treasury bond
Total
fixed 160,87,500
assets
610,59,33,087
Total assets
145,00,000
129,12,500
113,25,000
97,37,500
761,97,99,767
913,18,48,516
1064,34,04,945
1215,26,52,500
The balance sheet shows that management ensure an increase in retain earning
at a fixed rate of 25% compared with the base year.
6.10
5 year
55%
Loan
45%
Equity
Sales
revenue
330,00,0
00
270,00,0
00
0
282,00,587
226,32,267
161,74,016
86,82,445
270,00,000
270,00,000
270,00,000
270,00,000
270,00,000
608,00,00,0
00
760,00,00,0
00
912,00,00,0
00
1064,00,00,0
00
1216,00,00,0
00
(A)Total
funds
Inflows
Funds
used:
COGS
Machine
ry
Admin.
exp.
Loan int.
Selling
exp.
(B)Total
funds
Outflow
s
(A-B)
net
Change
600,00,0
00
613,52,00,5
87
764,96,32,2
67
916,31,74,0
16
1067,56,82,4
45
1218,70,00,0
00
0
0
291,67,500
160,87,500
298,32,500
145,00,000
313,25,500
129,12,500
322,77,500
113,25,000
343,47,500
97,37,500
31,89,000
31,89,000
31,89,000
31,89,000
31,89,000
47,99,414
55,67,320
64,58,215
75,91,571
86,82,445
200,00,000
200,00,000
200,00,000
200,00,000
200,00,000
453,55,000
443,32,500
442,38,000
436,02,500
440,85,000
600,00,0
00
608,98,45,5
87
760,52,99,7
67
911,89,36,0
16
1063,20,79,9
45
1214,29,15,0
00
Cash flow increasing throughout the next 5 years at a fixed increasing rate
(25%, 50%. 75%, 100%).
6.11NPV (Net Present Value)
McDonalds Corporation (Franchise-Bangladesh)
NPV (Net Present Value) Analysis
31 | P a g e
Year
Discounted rate
Cash flow
(600,00,000)
360,80,62,732
451,74,49,398
15%
542,47,76,363
633,39,30,947
724,21,38,276
NPV=[{360,80,62,732/(1.15)}+{451,74,49,398/(1.15)^2}+{542,47,76,363/
(1.15)^3}+
{633,39,30,947/(1.15)^4}+{724,21,38,276/(1.15)^5}]600,00,000=
354,32,56,509
Positive NPV indicates that the project will be lucrative for the investor and
represent a worthy project.
6.12Payback period Analysis:
McDonalds Corporation (Franchise-Bangladesh)
Payback Period Analysis
Year
Cash Flow
Cumulative Cash flow
1
360,80,62,732
360,80,62,732
2
451,74,49,398
812,55,12,130
3
542,47,76,363
13,55,02,88,493
4
633,39,30,947
19,88,42,19,440
5
724,21,38,276
27,12,63,57,716
Payback
Period=
Year
before
Complete
Recovery
Unrecovered Investment
Cash Flow during the Recovery Year
Payback Period= 1+
3,60,80,62,732
4,51,74,49,398
= 1.79 or 2 years
32 | P a g e
PART-7
SOCIAL ASPECTS
7.1 Environmental impact of project:
McDonalds will ensure environment friendly raw-material and its food items production
process which will not be harmful anyhow. It will follow a well waste management which
ensure antipollution.
7.2 Contribution towards the economy:
It will contribute to the economy as follows:
Providing employment to the civilians.
Supporting local raw material suppliers.
7.3 Social cost benefit analysis:
In the society our project will bring many benefits:
Creating employment opportunities
It uses local raw materials.
It provides world class fast food items.
In the society our project can cause some costs:
It may drive young generation towards the fast food.
33 | P a g e
APPENDIX
Formula Used
Payback Period= Year before Complete Recovery +
(Unrecovered Investment )/(Cash Flow duringthe Recovery Year)
IRR= Lower rate ( Lower rate NPV )/(Lower rate NPV H igher rat e NPV ) + (Higher
rate-Lower rate)
t
NPV = Ct /(1+ R)
initial investment
Reference:
1. Chandra,P.(2006).Projects,Planning,Analysis,Selection,Financing,Implementation
and Review.NewDelhi:Tata McGraw-Hill Publishing Company Ltd.
2. Retrieved from http://www.mcdonalds.com/us/en/food.html
3. Retrieved
from
responsibility.html
4. Retrieved from
McDonalds
http://www.mcdonalds.com/us/en/contact_us/social_
http://www.scribd.com/doc/11520753/Marketing-Strategies-of-
34 | P a g e