Questions On Financial Plan For Tempshadow Ink

• Year 2; Scott to provide 2nd generation “Print Rite”, Rapid to pay original contract amount for year plus at minimum, $12,000 at the end of year (equivalent to $1,000/month) for software application with the following contingency:

Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts

What seems to be the main issue is actually getting to build the prototype. Without it, lot of potential investors turned it down. For venture capitals and future potential clients to show further interest, Shane needs to show them a working prototype. However the prototype itself requires an investment of $250,000, this has proven to be difficult to raise. Without the prototype no one is willing to invest in the business, and without the investment Shane is unable to build a prototype. He is stuck in a vicious cycle and needs to find a different way to raise capital for his prototype.

Capital can come from state and corporate pension funds, public and private endowments and personal investors

needed to create the factory GEL will look for investors to help with the construction of the cost of the factory.

The Present Worth of this project with a 36,000 bbl/day facility is $404.5M and the total profit that Wildcat Oil is expected to make is $404.5M - $260.4M, which amounts to $144.1M.

As a component of the structural variables in the organization of Henderson Printing the reward system is archaic and ineffective at best, it is therefore important to understand the contextual variables affecting Henderson that will determine the most appropriate managerial strategy for this organization. Of the five contextual variables, Environment is the most critical. Henderson Printing is operating in an environment that is stable, their technology is not changing rapidly, they do not have an unpredictable regulatory environment, the life cycles of their products are long term, and demand for the their

* A new project idea which requires an investment of $2 mm and will generate total cash flows (including any salvage or terminal value) next year of either $4mm (recession) or $8mm (boom). The firm has not yet raised the cash to make this investment, but the market is aware of the investment opportunity.

Drakes Western Outfitter will be a partnership comprised of five people, meaning that each person will have 20% ownership in the business. The five people in the partnership are Colton Drake, Muhammad Thanvi, Reina Cruz, Damond Jackson and Eduardo Camacho. Each person brings a unique set of skills to the business and therefore we decided to make a partnership to increase our profitability. As a brand new business starting out we are each investing $5,000 and will be applying for a SBA (7a) loan. The loan is going to be used to cover our startup cost, which will be explain in greater detail in Startup Expenses and Capitalization. The loan will make our business more profitable because it will allow us to advertise and purchase inventory, two very important aspects of a business.

Hart Venture Capital (HVC) specializes in providing venture capital for software development and Internet applications. Currently HVC has two investment opportunities: (1) Security Systems, a firm that needs additional capital to develop an Internet security software package, and (2) Market Analysis, a market research company that needs additional capital to develop a software package for conducting customer satisfaction surveys. In exchange for the Security Systems stock, the firm has asked HVC to provide $600,000 in year 1, $600,000 in year 2, and $350,000 in year 3. In exchange of their stock, Market Analysis has asked HVC to provide $500,000 in year 1, $350,000 in year 2,

The investment requested is £12 million. Strategic and operating benefits were summarized in our previous memo to you. We have made, however, some changes to our investment analyses, which appear below.

It is clear at first glance of the cash budgets that if the projections prove to be accurate, the firm will remain in good shape. It is important to note that the cash budgets provided assume a loan from the bank of $200,000 at 15%. A loan of $200,000 was chosen because it is always better to over-finance the business than to under-finance it especially in its first year of operations where sales and expenses are so volatile and could prove to be quite inaccurate. If a loan of only $150,000 or even $100,000 is secured by Robert & Alex, they should still be able to stay afloat, although they will have a harder time paying off some of the principal of the loan in the opening

2. Funding: Apex Investment Fund II’s partnership agreement prohibited the venture capitalists from investing more than a few million dollars in any one deal but as a lead investor, Apex need to put $2 million of its own capital. Or need to bargain on the price for attracting others.

If Lars decides to invest around $6 million more in research and development, it is highly risky as the company’s survival depends largely on the success of the launch of Ray’s new product into the market.

Another issue was the finance from the conventional sources which were reluctant to invest. They would need at least £235,000 to add to their own invest of £45,000 to cover the costs and operational losses for 12 months period. But, if it works out, then they would at £1 million profit by year five. Despite their enthusiasm and impressive CVs, the business angels deterred by their lack of experience in this market sector. However, they managed to get an appointment with Maurice Pinto, a private investor, who agreed to invest £235,000 for a 20 percent share in the company.