One capital investment that the company will need to secure financing for in the coming year is another infusion branch located in Florida. This type of investment would require around 150,000 in the first 1-4 months liquid capital to start. There are various other expenses that will be incurred ultimately resulting in roughly 500,000 as a total investement. There would not be a franchise fee due to it being an inner company branch. Inventory can be 12,000-18,000 to start off, 9,000-77,000 for staffing etc. (2021).

As a manager I would ask if there has been any stufy of the business in the areas and competitors? Would we have the money to invest in going out to establish our presence and accounts in addition to the initial investments. Would this need to be an additonal funding for the budget?

Time value of money is the most important component of financing. The time line, step-by-step approach amongst many others will show the future value of the investment. Based on the equations, the capital investment would be of value to the organization.

Reference

Brigham E. F., & Houston, J. F. (2022). Time value of money. In Fundamentals of financial management (16^thed., pp.151-185). Cengage Learning

What are the startup costs for a vital care home infusion franchise? The #1 Infusion Pharmacy Franchise. (2021, June 25). Retrieved April 20, 2022, from https://www.vitalstarts.com/blog/what-are-the-startup-costs-for-a-vital-care-home-infusion-franchise/

Respond to your colleagues' posts in one or more of the following ways:

• Ask a question about the capital investment your colleague identified.
• Provide an additional question that your colleague might ask about the company's financial position before engaging in the investment, including a rationale for why they might ask it. Or, expand further on one of the questions they identified.
• Share an insight you gained from or offer an alternative perspective on your colleague's proposal of whether the capital investment would or would not be of value to their organization at this time.