Question
Below are the requirements for a project that I have to do. I am drawing a blank on possible topics that would work for this
Below are the requirements for a project that I have to do. I am drawing a blank on possible topics that would work for this particular projects. What ventures could an existing business branch out in? Financials have to be easy to access as they are required with the project.
For yourfinal project due in Week 8, you will provide Proposal for an investment in new Business or project within an existing organization. Business/Project should generate revenue by selling aproduct and/or providing service.
- Submit a business proposal for a new business (A new "start-up" venture that you or a group of people are contemplating)
- Submit a new project proposal (Possibly one that you and/or your firm is working on now or recently completed)
Prep a proposal using the requirements list below. The proposal should focus on solving a organizational problem and provide for cost savings and/or revenue-generation. I suggest that you use a project that you have or plan to propose to your organization or a start new business that already exist and that you would like to start someday.It is much easier to work with actual figures than to make up a fictitious company and researching what the possible figures might be. The proposalshould include all(but is not limited to) the following information:
- Briefly describe the Business venture/project and its relationship to the organizational mission.
- If this is a new business, what is the legal structure (Partnership, Corporation or S Corporation)?
- What method of accounting (Cash method Vs Accrual method) will you use? Why?
- How will you price your product and/or products? What is the mark up on the product? What pricing strategy, Target Price and/or Cost Plus Price? Use this in the Sales Budget.
- You should explain if you are tracking cost using Job Order Cost system, Process Cost system, Operating Cost system, Activity Based cost system (for overhead) and/or a combination of the systems
- Make 1year Master Budget (refers page 254 & 255 in the textbook) for the business/project.
- Prepare Cash budget (and/or Cash Flow statement) and provide a brief analysis of cash flows from Operation, Investing and Financing activities (Cash flow statement analysis)
- Break Even Analysis, Target Profit and Margin of Safety in units and Sales Dollars for the Business/Project
- Discuss the Return on Investment and/or Economic Value Added for the business/program/project to measure its projected performance.
- What is the Business/Project's Payback Period, Accounting rate of return and Net Present Value?
- If capital equipment is involved, is there a lease or buy decision - (NPV analysis).
- If new a Business or Project, calculate and show the Present Value of the Business or Project using NPV analysis based on the expected future cash flows (possibly from Cash Budget or Cash flow statement).
- Do you require new personnel?
- How will you fund this new program? Raising capital for the Business/project/program through funds internally (Retained Earning) to the company or externally via Bonds/Loans and/or Equity from investors.
- Evaluation business/project comparing following ratios with Industry and/or major competitor
- Profitability and Total Asset Managementby calculating the following ratios: Profit Margin, Asset Turnover and Return on Asset (Refer to Page 541 to page 543)
- Solvencyby calculating the following ratios: Debt to Equity and Time Interest Earned (Refer to Page 545 to page 546)
- Liquidityby calculating the following ratios: Cash flow yield, Cash flow to Sales, Cash flow to assets and finally Free Cash Flow and Time Interest Earned (Refer to Page 543 to page 544)
- Have a conclusion convincing financer/management to finance the Business/Project.
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