create and write a short Business project, FINANCIAL knowledge STRONGLY required!
This part requires you to use your imagination, be creative; learning should be fun too! Pretend I am a wealthy businessman with lots of current cash on hand (earning me no return, not a good thing) and you are starting a firm or have a current firm and are pitching a new project to have me invest.
Step 1: Tell me about your firm/project BRIEFLY
Step 2 Tell me/show me about you projections of your past/present/future sales, costs, ratios, income, OCFs, etc.
Step 3: Value your company/project to ask me for the money to undertake the project (i.e. think of appropriate discount rates due to risk, growth rates, etc.)
NPV analysis is the overarching goal of the project, without it, you will fail the project
-so, you probably will need OCF, CAPEX and NWC, right?
-How did you get to those numbers? (can be sort of made up, but reasonable)
-depending on your setting will determine what â€˜financialsâ€™ you present
-I think 1 page max, single space writing is sufficient
-you may have a few tables and charts so I will not limit those…BUT more is not always better.
-A useful chart/graph is priceless. A non-useful one is detrimental.
-How did you get to the risk? i.e. discount rate.
Question 2, how to get the money
ALWAYS remember…pretend I was your boss and asked for this project as a part of your job, what
would you turn in?