Custom Pencil Business Pitch essay paper writing service

← Jet BlueMarketing Opportunities →

Buy Pencil Business Pitch essay paper online

Even though the cost of initial investment might be higher, it could be discounted over the years to ascertain the net present value of the pencil business project.  The class should finance the idea since it would generate additional revenue to the school. Moreover, the students would be able to obtain the products at lower cost. The technology employed in the production process would be environmentally friendly, because fewer toxic wastes were emitted in the atmosphere. In addition, some of the materials used in the production process could be recycled to produce more items, thus increasing the number of units produced. The pencil brand would also attract more customers.

It is beneficial to invest in the pencil business, and this is evident from the following illustration. Suppose the initial costs for the pencil investment is $25,000 and the following are the expected cash inflows: $5,000 for year 2, $10,000 for year 3, $15,000 for year 4, and $12,000 for year 5. All these cash flows come at the beginning of the period and have a discount rate of 10%. The following calculations are used when making investment decision on the pencil business.

Net Present Value (NPV) Calculation of the Pencil Business Pitch

NPV= ${[5,000/(1+0.1)^2] + [10,000/(1+0.10)^3] + [15,000/(1+0.10)^4] + [12,000/(1+0.10)^5]} – 25,000

NPV =$ (4,132 + 7,513 + 10,245 + 7,451) -25,000

NPV = $29,341 -25,000

NPV = $4,341

Internal Rate of Return (IRR) of the Pencil Business Calculation

IRR is calculated by equating the Net Present Value (NPV) to zero.

NPV = 0

-25 + {[5,000/(1+IRR)^2] + [10,000/(1+IRR)^3] + [15,000/(1+IRR)^4] + [12,000/(1+IRR)^5]}= 0

Therefore, IRR = 14.87%

In conclusion, the class should invest in the pencil production, because it is profitable. The reason for this is that the net present value and the internal rate of return for the business are positive.

Buy Pencil Business Pitch essay paper online

Related essays

  1. Marketing Opportunities
  2. Toyota's Entering the Global Market
  3. Jet Blue
  4. The Law of Business
 
order now
Live chat!
Planets Live support online chat Live support phone
Our Advantages
300 Words per page
Bottom line
12 pt Times New Roman Double-spaced typed page
Bottom line
MBA and PhD Writers
Bottom line
Relevant and up-to-date
Bottom line
US Writers
Bottom line
100% Quality Guarantee
Bottom line
24/7 Support
Bottom line
24/7 Live Chat
Bottom line
Flexible Discount Program
Bottom line
ANY Difficulty Level!
Testimonials

Thank you for restoring my hope in being able to complete my Masters class this year by assisting me with completing my paper. Your writers are the best and I thank you for the effort you put into my work.


Sheikh A., Doha, Qatar

I cannot afford to keep silent after receiving such tremendous help. Keep up the good job.


Wilhelm G., Bern, Switzerland

I cannot believe that I actually got my thesis completed in such a short time and that I was kept posted throughout the exercise. I am sure that my professor will be very impressed.


Gavin B., Tulsa, Oklahoma

X
-15% first order  Order now