RQ1 - A close friend, church member or family member has come to you with a business plan and is asking for an investment in what seems like a great idea. You have the money to invest and their financial forecasts show a positive return on investment over the next three years. PICK TWO of the following FOUR items and explain how you would evaluate their financials and business plan relative to this area. What questions might you ask and how would you evaluate their responses?

1. Projected Cash Flow
2. Profitability/EBITA/Operating Margin
3. Startup Costs and Sources of Capital
4. Sensitivity and Risk Factors