Running Head: LARGE CAPITAL EXPENSEJustification of a significant capital expense for foodservice(Student Name)(Institution)1LARGE CAPITAL EXPENSE2IntroductionFor the food department, Menghini La Cambusa Refrigerator suits the solution to the issuesaffecting our food department. The fridge costs $41,000, has three doors, and is dimensionallylarge. The refrigerator measures 218.5 cm, 249 cm in width as well as 63 cm in length. The fridgeis seen as a complete kitchen and thus is very appropriate for food preservation in the department.(Rodgey, 2012).As the project leader, there are lots of benefits that shall emerge from purchasing the fridge.First, since our firm highly depends on the preservation of food products as well as fruits, we needthe purchase of the refrigerator to accommodate the increasing amount of foods. Secondly, thefridge is spacious and thus can provide the high demand for cooling foods for the company.Capital analysis of Menghini La Cambusa Refrigerator.The estimated cost for the fridge is as follows:Purchasing the fridge:$41,000Transportation to the company:$1500Maintenance costs:$5000Power consumption$10000The refrigerator is urgently required and expected to serve the firm for the next 20 years.Why the urgency? The old refrigerators are failing to work. There has been a consistent failure ofthe old ones, which has been profoundly affected by the firm. The fridge is expected to yield areturn of $1,000,000 per ann ...
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