Posted: December 16th, 2015

Business Feasiblity and financial Plan

Beatrice remembers discussions on discounted cash flow analysis at business school (although she admits that she did not fully understand it, unlike her husband who was a distinction student). She has asked you to prepare an analysis while she is away to help her with the decision, making clear any assumptions that you make; the analysis should not exceed 4,000 words (excluding the content of exhibits, headings, etc), or a total of 30 pages (everything included), and should include:
– A summary of all assumptions and estimates that you have made for your analysis, including justifications where appropriate;
– A break even analysis;
– A Balance Sheet at start-up (to show the initial capital) and at the end of the first year;
– Monthly cash flow for the first year of operation;
– Annual cash flow thereafter;
– A clear explanation, in plain English, of how much cash the venture will need to get started;
– Any sensitivity analysis that you think would be helpful;
– The most that Beatrice could offer IndiaPetal as an upfront fee for the exclusive rights for the five year period which would leave her no better or worse off than if she did not undertake the venture, and the amount you suggest she should actually offer them;
– Conclusions and recommendations;
– A critical reflection of the analysis that Beatrice has asked you to prepare – what, if anything, would you do differently in a financial analysis of this opportunity, and why?

Beatrice has explained that she is going to be out of town for a wedding so will be unable to provide any assistance at all, but as she pointed out before leaving “you will find this easy with computers and the internet to help”.

Your report should demonstrate skills of critical reflection, effective communication and balanced judgement; note that this is not a market report.

Scripts that are excessively long (i.e. exceeding the word limit by more than 10%) will not be read beyond the point of the word limit; there is no minimum word limit. Do not put your name on the paper.