A group of Caribbean investors have approached you to provide consulting services. They require some further understanding

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Question:

A group of Caribbean investors have approached you to provide consulting services. They require some further understanding of a potential business venture before they will decide whether or not they should commit their hard-earned capital. Some potential ventures are shown in APPENDIX A. You are required to choose either of the two (2) topics to which you are assigned. If you wish to base your response on a topic not on the list, then this is also permitted. You are required to perform the tasks numbered a. to f. The report should flow logically and may be ordered as you see fit. Pages should be numbered and you should include a cover page, abstract, table of contents and introduction, as well as a discussion and conclusion. Perform the following:

a. Using actual prices and citing your sources, prepare a start-up budget for the chosen business venture. At least two (2) distinct products/services must be provided by the venture. [10 MARKS]

b. Cost each of the featured products/services using an appropriate costing strategy and determine the break-even point for each. [10 MARKS]

c. Prepare appropriate projected semi-annual financial statements for the first three (3) years of operation including balance sheets, cash flow statements and income statements. [10 MARKS]

d. Analyse your projected financial statements to determine the likely financial health of the venture over the first three (3) years. [10 MARKS]

e. Perform a Capital Investment Analysis for the project. At minimum, determine the Net Present Value (NPV), Internal Rate of Return (IRR) and Discounted Payback Period (DPP). [10 MARKS]

f. Make recommendations to the investors as to the potential financial viability of the project, with sufficient justification. [10 MARKS]

FROM APPENDIX A USE THE TOPIC "BUSINESS ATTIRE"