Investment Criteria Essay

Company has no local competition and the company has an opportunity to establish itself as the market leader nicher for the product that is offering.

The firm also has several branches across different states. This offers a deliberate effort regarding location since the strategy behind this is placing and concentrating the outlets in populations where middle-income households reside. This concept helps to cut implicit transaction price regarding distance and time.

EEC calculated the amount of time involved the anticipation of its cost ($3 million). The timeline in recovering their cost of investment ($2 million) initially for the foundation of this investment any profit made in the future of this investment will be justified as a profit for the company. If EEC can anticipate a fast return on its investment it is a profitable wise decision in making the investment financial, it is considered to be an easier way of formulating investments financially. On the basis of one year all cash flows is added together equal to the sum of $2 million originally invested, then it is divided by the annual cash flow of $500,000. The calculation of the payback period would equal four years. After this time frame any financial proceeds will be considered profitable for the company. I conclude that the timeframe is adequate in comparison of the investment in this worthwhile investment financial venture for the company.

Everyday there is the entrance of new products and services in the market. Additionally, product innovation drives competition between multiple organizations. Subsequently, there is a shift in prices and the types of services of provided. Next, there are multiple channels in which goods and services are provided to consumers. These distribution channels include producer to consumer, retailer to consumer, and wholesaler to retailer and consumer. Moreover, supplier diversity allows for economic growth. In some instances it may be difficult for diverse businesses to obtain capital upon start-up. However, many of the supplier programs provide networking opportunities to those who encounter any

This is with the understanding that our new product is classified as a Star (high growth, high share business or products. They need heavy investments to finance their rapid growth. Eventually their growth will slow down and they will turn into cash cows. Chapter 2) on the Growth Share Matrix (A portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share. Chapter 2). Initially, in the introduction stage (The PLC stage in which a new product is first distributed and made available for purchase. Chapter 9) Anchor Alert will require larger amounts of funding to support the initial start-up fees, product productions, and building the early marketing, which will eat into initial

* Higher sales volume in wider location and hence higher profit (distributor require either high volume sales or high advertising, hence if tied up with any one distributor, the sales target might go high requiring the company to be more competitive)

Given these data, the target cost to manufacture, sell, distribute, and service one mixer is:

This is helpful for businesses because they know where the best places to expand are located without having to risk large sums of money experimenting. Furthermore, it divides the locations by into: Broad Canadian Interests, Specific opportunities for Canadian Business, and Established Markets. Looking at this, businesses can quickly determine the most suitable location to expand into.

In accordance with our previous discussion, as promised, attached is our proposal to provide business investment plan for Eagle’s Nest Hotels Inc., prepared by the following staffs: Weng Hong Hoh, Kang Yi, Nicklas Ivarsson and Moneeb Aziz.

They will face a higher production demand if they do increase sales to more areas. There will be more importance and expense on distribution due to having to make the sales with businesses in more distant States and with having to provide them with the product in a timely and dependable manner.

Imagine that you are a financial manager researching investments for your client that align with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment

William and Flora Hewlett Foundation is a private foundation that give grants and gifts to different programs and addresses different social issues that include education, environment, philanthropy, global development and population, performance art programs, and other special projects. The foundation’s main objective is to help improve the lives of people for the betterment of the society. HF is a nonoperating foundation and relies on the “return on invested assets” to run the whole program (Viciera & Tung, 2006). With that being said, the foundation has to invest their resources to different assets and that it will help achieve the foundation’s goals.

Not mention, however, the company might be work on the distribution of the dealers. Because Chatterjee mentioned that their major competitors are weakly of distribution.

So the investor will invest 32.58860806% of the investment budget in the risky asset and 67.41139194% in the risk-free asset.

In a competitive environment, as well as to improve the efficiency of investment projects must be possible to analyse the structure of income and expenses, investments, potential markets for the proposed products or services, the timing of projects and their viability in comparison with other projects. To address these challenges by investors at the stage of pre-investment studies can be created special units, including: