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Capital Budgeting PROJECT ANALYSIS - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Capital Budgeting Analysis Institution Instructor Date Executive Summary The group project is for Westminster College to acquire the Assets of Brainstorm Skis, which will result in full student governance with oversight from Westminster College and the industry Board of Directors…
The company’s target market will be the students and friends of the college. The students will be offered the skis at a discounted rate of $250, and the outsiders will purchase the skis at $600. Since the project will be generating revenue, there will be no need of finding other means of funding as the project’s operations are anticipated to generate enough revenue that will be ploughed back as a means of funding. The project was selected for the following reasons: First, project will be beneficial to college in terms of learning and management to the students because they will be exposed to a real-time work environment. The students of Westminster will use the company for their internships where they will be in a position to learn various management and production skills. The company is anticipated to have a stable management that will perform efficiently and effectively because of support and supervision that will be offered by the College’s Centre for Entrepreneurs and the Company’s Board of Directors. If the project is successful, it will benefit the college first, in terms of revenue generation and second, as part of the college the capital invested back into the business will subsequently also increase the asset value of the college. ...
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