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Transcription of this question: Cochabamba AcademySilvia and Daniel are planning to open a school in Bolivia called the Cochabamba Academy. They arecurrently analysing the figures to consider whether, with their initial capital investment Of $63 000,the Academy will be profitable. They are worried about potential cash flow problems that the schoolmight face and have collected the following financial information:Planned Inflowsa monthly school fee paid from February until November of S200 per studentan annual registration fee Of $300 in OctoberPlanned Outflowsa total Of 11 teachers will be employed at S500 per month, per teacherSilvia and Daniel will manage the school and pay themselves salaries Of each per monththe average monthly expenses are $20000They plan to open 8 classes. Each class will have an average Of 20 children. Below is an excerptfrom a cash flow forecast that they have prepared:InflowsFeesRegistration feeTotal InflowsOutflowsSalariesExpensesTotal OutflowsNet cash flowOpening balanceClosing balanceSe tember32 ooo32 ooo950020 ooo29 500250015 ooo17 500October32 ooo48 ooo80 ooo950020 ooo29 500November32 ooo32 ooo950020 ooo29 500December950020 ooo29 500(This question continues on the following page)(Question I continued)(b)(c)(i)(ii)(i)(ii)State on the lined paper provided for your answers the values for:net cash flow in Octoberclosing balance in Octoberclosing balance in Novembernet cash flow in December.Comment on the cash flow position Of the Cochabamba Academy.Given the information opposite, calculate the annual profit or loss Of theCochabamba Academy. (Show all your working)Calculate the payback period on the initial investment Of $63 000.(Show all your working)Based on financial and non-financial factors, evaluate whether Silvia and Danielshould open the Cochabamba Academy.[4 marks][4 marks][4 marks][2 marks][6 marks]

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