Pretend Mr. Josh is a wealthy businessman with lots of current cash on hand (earning him 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 Mr. Josh invest.

Step 1: Tell about your firm/project BRIEFLY

Step 2: Show youe projections of your past/present/future sales, costs,

ratios, income, OCFs, etc.

Step 3: Value your company/project to ask Mr. Josh for the money to undertake the project (i.e.

think of appropriate discount rates due to risk, growth rates, etc.)

TIPS:

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 'financials' you present

-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?

General rubric for project grading

1) Is every question answered in entirety?

2) Is the project clear and easy to understand?

3) Conceptually, do you understand what you are doing?

4) Layout: does it look nice, clean, easy to follow, and professional?