Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Net Income Estimate of Proposed Venture's Net IncomeYear 1 Explanation of How the Estimate was Computed Estimate of Year 1 Net Income __________ Summary: How

Net Income

Estimate of Proposed Venture's

Net IncomeYear 1

Explanation of How the Estimate

was Computed

Estimate of Year 1 Net Income __________

Summary: How proposed net income, on average, compares to similar firms (circle one)

Below Average AverageAbove Average

Estimate of Year 2 Net Income __________

Summary: How proposed net income, on average, compares to similar firms (circle one)

Below Average AverageAbove Average

Overall Financial Attractiveness of the Proposed Venture

  • The following factors are important in regard to the overall financial attractiveness of the proposed business.
  • Assess the strength of each factor in the following table.

Overall Financial Attractiveness of Proposed Venture Assessment Tool

(Highlight or circle if Low Potential Moderate Potential or High Potential pertains to business)

Low Potential Moderate Potential High Potential
1. Steady and rapid growth in sales during the first one to three years in a clearly defined target market Unlikely Moderately likely Highly likely
2. High percentage of recurring incomemeaning that once you win a client, the client will provide recurring sources of revenue Low Moderate Strong
3. Ability to forecast income and expenses with a reasonable degree of certainty Weak Moderate Strong
4. Likelihood that internally generated funds will be available within two years to finance growth Unlikely Moderately likely Highly likely
5. Availability of exit opportunity for investor if applicable Unlikely to be unavailable May be available Likely to be available

Conclusion (report finding for each area)

Here is where you would type findings for Part 4 for each letter. sentences for letters A & B.Letter C either highlight or circle.Letter D, if any suggestions list them in bullet form (note: do not have any improvements don't worry about letter D)

A. Total startup cash needed
B. Financial performance of similar businesses
C.

Financial feasibility (circle the correct response)

Not Feasible Unsure Feasible

D. Suggestions for improving financial feasibility

Overall Feasibility: Summary and Conclusion

Overall Feasibility of the Business Idea Based on Each Part Suggestions for Improving the Feasibility

Product/Market Feasibility

Not feasible
Unsure
Feasible

Industry/Market Feasibility

Not feasible
Unsure
Feasible

Organizational Feasibility

Not feasible
Unsure
Feasible

Financial Feasibility

Not feasible
Unsure
Feasible

Overall Assessment
Not feasible
Unsure
Feasible

Conclusionbriefly summarize justification for overall assessment.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

10th Edition

1119491630, 978-1119491637, 978-0470534793

Students also viewed these Law questions