Task for P$6$:

C$.$P$6$ Explain reasoning for formulating the outcome of a business decision.

Scenario:

After reviewing the financial data for the short$-$term rental business, Siti needs to make a

decision on whether or not to invest. You have been asked to formulate an outcome based on

the financial data and justify your reasoning.

Task:

Based on the financial data $($yearly costs, predicted revenue, investment appraisal$),$ explain the

reasoning behind your decision on whether Siti should go ahead with the investment.

In your reasoning, consider:

How the investment appraisal results $($including net cash flow and present value$)$ indicate

the profitability of the business.

How the yearly costs and potential risks could affect Siti's cash flow and long$-$term

financial success.

Whether the predicted revenue will be enough to cover the costs and generate profit.

Any other business factors that should be taken into account $($market conditions,

customer demand, competition$).$

What You Should Include in Your Answer:

A clear justification of the decision $($whether to invest or not$),$ referencing the data and

financial figures.

Detailed reasoning based on both the numerical data and external business

considerations.

Alternative outcomes: If you recommend Siti not invest, what alternative paths could she

take $($e$.$g$.,$ adjusting the business plan, reducing costs$)?$