Acquisition of Asset and Asset Management System for Cafe B

Running head: HOSPITALITY MANAGEMENT
Hospitality management
Name of the student
Name of the university
Student ID
Author note

1HOSPITALITY MANAGEMENT
Table of Contents
Section 1 – acquisition of asset..................................................................................................3
Part 1......................................................................................................................................3
Part 2......................................................................................................................................3
Part 3......................................................................................................................................3
Part 4(a)(i)..............................................................................................................................5
Part 4(b)(i)..............................................................................................................................6
Part 4(b)(ii).............................................................................................................................6
Part 4(c)(i)..............................................................................................................................7
Part 5......................................................................................................................................7
Part 6(a)(i)..............................................................................................................................7
Part 6(a)(ii).............................................................................................................................7
Part 6(a)(iii)............................................................................................................................8
Part 6(a)(iv)............................................................................................................................8
Part 6(b)..................................................................................................................................8
Part 6(c)(i)..............................................................................................................................8
Part 6(c)(ii).............................................................................................................................9
Part 6(c)(iii)............................................................................................................................9
Part 6(d)(i)..............................................................................................................................9
Part 7......................................................................................................................................9
Section 2 – Asset management system (BMC asset management)..........................................10
Part 2(a)................................................................................................................................10
Part 2(b)................................................................................................................................10
Part 2(c)................................................................................................................................11
Part 3(a)(i)............................................................................................................................11

2HOSPITALITY MANAGEMENT
Part 3(b)................................................................................................................................11
Part 3(c)................................................................................................................................11
Part 3(d)(i)............................................................................................................................11
Part 3(d)(ii)...........................................................................................................................12
Part 4(a)................................................................................................................................12
Part 5(a)(i)............................................................................................................................12
Part 5(a)(ii)...........................................................................................................................13
Part 5(b)(i)............................................................................................................................13
Part 5(b)(ii)...........................................................................................................................13
Part (5)(c).............................................................................................................................13
Part 6(a)................................................................................................................................14
Part 6(b)................................................................................................................................14
Part 7(a)................................................................................................................................14
Part 7(b)................................................................................................................................15
Part 7(c)................................................................................................................................15
Section 3 – Asset Replacement................................................................................................15
Part 1(a)(i)............................................................................................................................15
Part 1(b)(i)............................................................................................................................15
Part 1(c)(i)............................................................................................................................16
Part 1(c)(ii)...........................................................................................................................16
Part 1(c)(iii)..........................................................................................................................16
Part 2(a)................................................................................................................................16
Reference and bibliography.....................................................................................................17
Appendix..................................................................................................................................20
1. Contract agreement.......................................................................................................20
2. Loan agreement.............................................................................................................24

3HOSPITALITY MANAGEMENT

4HOSPITALITY MANAGEMENT
Section 1 – acquisition of asset
Part 1
Various particular factors are there those required to be considered while thinking if
acquiring Impinger Oven, Alfresco Dining area, iPad systems and paperless online booking
system. These factors are as follows –
 Inflation – if the inflation rate of any country changed the purchasing power of the
people also changed. Hence, while considering acquiring of any asset effect of
inflations shall also be taken into consideration (Glasson and Gibbons 2015).
 Post – tax return – after tax return is always lower as compared to pre-tax return.
Hence, Café B must consider regarding the possible return that may be created from
the asset. Hence, before taking final decision regarding investment post tax return
must be computed.
 Effective annual rate – generally the nominal rate of return does not match with the
annual return rate owing to the compounding rate in the year. Hence, it must be
considered before considering the investment (Campbell, Jardine and McGlynn
2016).
Part 2
Mandatory acquisitions are taken into consideration with the concern of various
aspects like growth of revenue, capacity of production and margin of profit. It shall further be
considered that the acquisition shall be made in such manner that it shall fulfil the key
objectives of the entity. These key objectives are depending on the paperless system of
inventory control, POS ordering and enhancing the payment amount of dividend over the 5
years time period. Further, the asset management register shall also be taken into
consideration for details regarding the accounts payable, general ledger and system for
managing the assets (Garleanu and Pedersen 2018).
Part 3
Cash budget year 1

5HOSPITALITY MANAGEMENT
Cash budget year 2
Cash budget year 3