Frozen yogurt
Free cash flow assumptions:
Revenues assumption:
cost assumptions:
initial outlays assumptions:
cost of capital assumptions:
What is the price? Evaluate the financial feasibility of a new business venture of your choosing using the tools and concepts covered in this course. To evaluate the business, you will need to obtain information regarding revenues, costs, and cost of capital that you will use to estimate cash flows and cost of capital. You will most likely not find all the information you need on the internet and therefore you will have to conduct an offline research to obtain the relevant information. You can also obtain information from an existing business that you have access to How many students in cach srom! You can either work alone or in a group of 3-4 students. Males and females must not mix in a group Proiect Timing 20/12/2020 Team formation if there are students who are not already in a team after this date, they will be randomly grouped. 22/12/2020 Submission of project idea: your idea must be submitted to and approved by the TA. If your idea is submitted after this date, you will be deducted 1 point. 11/12/2021 Submission of project information this is the information that you will obtain and use to estimate free cash flows and cost of capital. The TA will assist you in your information collection phase in order to help you obtain all the information you need. You can still collect information after this date but the TA will not review it and provide you with comments. If you don't submit information to the TA by this date, you will be deducted I point. The information that you will submit don't have to be complete, but you mest provide the sources 43/2021 Submission of deliverables, please refer to the "Deliverables" section below for more information If you submit the project between 11/2/2021 and 24/2/2021, you will get bonus Deliverables 1) Excel model: you will need to perform the following using Excel: Estimate free cash flows for five years in the future Calculate the cost of capital Evaluate the project using two capital budgeting techniques one of which must be the NPV Break-even analysis - Sensitivity analysis Scenario analysis using your assumptions 2) Report: The report should consist of four sections, namely introduction, analysis recommendation, and sources. The introduction should provide the reader with an overview of your business. In the analysis section, you should explain the steps you've taken to estimate free cash flows and cost of capital in detail. The conclusion should lay out your recommendation which will be based on your findings in Excel. The recommendation should start with an analysis of your findings (NPV, break-even analysis. sensitivity analysis, etc) followed by a conclusion. You don't need to explain how you calculated your findings but rather what these findings mean. The sources section should list all the sources of the information you used to estimate free cash flows and cost of capital. There's no limit on the number of pages of the sources section, but the introduction analysis, and recommendation sections must not exceed two pages What is the price? Evaluate the financial feasibility of a new business venture of your choosing using the tools and concepts covered in this course. To evaluate the business, you will need to obtain information regarding revenues, costs, and cost of capital that you will use to estimate cash flows and cost of capital. You will most likely not find all the information you need on the internet and therefore you will have to conduct an offline research to obtain the relevant information. You can also obtain information from an existing business that you have access to How many students in cach srom! You can either work alone or in a group of 3-4 students. Males and females must not mix in a group Proiect Timing 20/12/2020 Team formation if there are students who are not already in a team after this date, they will be randomly grouped. 22/12/2020 Submission of project idea: your idea must be submitted to and approved by the TA. If your idea is submitted after this date, you will be deducted 1 point. 11/12/2021 Submission of project information this is the information that you will obtain and use to estimate free cash flows and cost of capital. The TA will assist you in your information collection phase in order to help you obtain all the information you need. You can still collect information after this date but the TA will not review it and provide you with comments. If you don't submit information to the TA by this date, you will be deducted I point. The information that you will submit don't have to be complete, but you mest provide the sources 43/2021 Submission of deliverables, please refer to the "Deliverables" section below for more information If you submit the project between 11/2/2021 and 24/2/2021, you will get bonus Deliverables 1) Excel model: you will need to perform the following using Excel: Estimate free cash flows for five years in the future Calculate the cost of capital Evaluate the project using two capital budgeting techniques one of which must be the NPV Break-even analysis - Sensitivity analysis Scenario analysis using your assumptions 2) Report: The report should consist of four sections, namely introduction, analysis recommendation, and sources. The introduction should provide the reader with an overview of your business. In the analysis section, you should explain the steps you've taken to estimate free cash flows and cost of capital in detail. The conclusion should lay out your recommendation which will be based on your findings in Excel. The recommendation should start with an analysis of your findings (NPV, break-even analysis. sensitivity analysis, etc) followed by a conclusion. You don't need to explain how you calculated your findings but rather what these findings mean. The sources section should list all the sources of the information you used to estimate free cash flows and cost of capital. There's no limit on the number of pages of the sources section, but the introduction analysis, and recommendation sections must not exceed two pages
