Horizontal Flow Inward Outward Flow Vertical Information Flow and Downward Information Flow of Financial Data in the Kuali System Essays and Term Papers

1239 WordsJul 7, 20115 Pages
Business Plan People have many dreams of owning their own business one day. Their are many things in which one would have to consider before getting started; one thing in particular is developing a business plan and to choose which type of financing that will be used in order to get their business started. “So what make up a business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.” [ (Business Plan, 2011) ] During this discussion one will compare three business projects to determine who should have the highest discount rate reflecting risk…show more content…
As one can this is a very extensive process and requires a lot of research and man-power. In comparison one will review three project named Acme Consulting, Interstate Travel Center and Silvera and Sons to see which would give the highest discount rate reflecting risk inherent. “Discount rate is a mathematical estimate of the time value of money and to some extent the risk in an investment.” (Berry, 2008) One will first take a look at Acme Consulting: The firm estimates profits of approximately $65,000 by year 3 with a net profit margin of 6%. The company plans on taking on approximately $130,000 in current debt and raise an additional $50,000 in long term debt to invest in long-term assets by 1998. The company does not anticipate any cash flow problems arising. (Berry, 2008) Next is Interstate Travel Center: The estimated size and growth potential for e-commerce varies widely. Forrester Research, based in Cambridge, Massachusetts, has estimated e-commerce at the consumer level at $7.8 billion in 1998, and projects that it will rise to $18 billion in 1999, $33 billion in 2000, and $108 billion in 2003. According to Forrester, total worldwide e-commerce, including business-to-business transactions, was estimated at $43 billion in 1998, and projected to hit $127 billion in 1999. The Direct Marketing Association has calculated that e-commerce

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