The Academy1

The Academy is a pre-university teaching institution founded in the 1980s by three university students who had gathered a small capital.He began his activities as a typical academy, with the teaching of classes in charge of university students who showed a superior performance in their studies.The success accompanied the Academy during its first years and, in a short time, it went from being a modest project to being an institution with 10 classrooms, teaching classes in 2 shifts and charging pensions similar to the most prestigious academies in the city.In sum, the case of a successful business based on the effort and capacity of its managers.

In 2008, the economic situation in the country still showed signs of recession and finding suitable jobs was still a difficult task.Given this situation, pursuing short specialization careers was an appropriate alternative for those young people with a desire to improve or for those displaced from the labor market who wanted to enrich their curriculum with atechnicalcareer.

It is in this context that the executives of La Academia intend to explore the possibility of expanding the scope of their institution, integrating the current business to a related one.The plan is to use the infrastructure of the Academy and the experience acquired in the education business to develop a technical training program.Over time, the project was redefined as a Graphic Design program that would later be extended to an Interior Decoration program.

The evaluation of this project was entrusted to a professional in Project Evaluation.The cash flow was projected for the La Academia business and, to this, the cash flow expected from the technical careers project was added.As the project contemplated the use of existing infrastructure, from the beginning the total business flow yielded positive results.Only in the third year a negative result was projected in the cash flow.This was explained by a series of disbursements that would have to be made for the launch of theInteriorDecoration career.

THE ACADEMY Project: Incorporation of Technical Careers Projected Cash Flow Program I Year Pre-university studies Graphic design Interior decoration Total Cash Flow 2009 100 200 0 300 2010 2011 100 100 300 250 0 -8,350 400 -8,000 2012 2013 100 100 250 300 150 300 500 700 2014 100 350 350 800 2015 100 400 500 1,000 2016 100 500 600 1,200 2017 100 500 700 1,300 2018 100 500 700 1,300