problem 1:

A restaurant selling pizzas is presented with project by a group of students to develop a mobile application to sell pizzas online with mobile electronic payment. It is felt that the mobile application will permit optimisation of the restaurant space since most orders would be for take away. It would also allow the restaurant to serve more customers (as it has over capacity in its kitchen). It is expected that the mobile application will alone generate about 10 pizza sales daily (sold at Rs200 per piece). A pizza costs Rs100 to produce. The students have charged the restaurant Rs100, 000. It is assumed that no additional hardware will be bought. But, there are additional recurrent costs of Rs 30,000 yearly for hosting and other services.

Assumptions:

1. Restaurant is open 365 days year

2. Discount rate of 8%

3. Project life is 3 years.

Problem1. Perform technical feasibility for the project

Problem2. What issues would have to be looked in for the operational feasibility of the venture?

Problem3. Is it worthwhile for the restaurant to invest in project?