Business Math Phase Essay
Ask for the amount of the investment and how he is going to finance it, whether equity or debt. Then establish the investment time horizon and yields required by the owner and see if they are feasible. To establish the investment amount information about fix investments is needed.
It is necessary to ask the client to bring historic documentation related to the other business’ branches.
Balances and financial statements in order to establish commercial, administrative and production costs, workforce needs, sector wages, maintenance costs, depreciations, insurances, services and taxes. After that, calculate the working capital needed in order to make feasible the investment. Knowing the working capital requirements, and its variations, is valuable information in order to distinguish clearly the difference which exists between economics results and the effects of long run operations in the firm’s financial position. ”… the business may realize that outsourcing the collection of receivables is an option that was previously thought to be cost prohibitive.” (Divanna, 2002, page 29)
The client would be likely to ask what all this detailed information is for. Why so many details are needed and what would be his benefit if this information is used. He might not be used to financial statements
Need essay sample on "Business Math Phase"? We will write a custom essay sample specifically for you for only $ 13.90/page
Joseph A. Divanna, 2002, Redefining Financial Services: The
New Renaissance in Value Propositions. Publisher: Palgrave. Place of Publication: New York. Page Number: 29.