Wednesday, July 24, 2019
Create an investment proposal for a business of your choice Assignment
Create an investment proposal for a business of your choice - Assignment Example Owing to the huge amount of the financial resources that will be required to implement the investment successfully, the funds will be sourced from commercial banks due to their ability in lending huge loans. The financial amounts that will be required to undertake a real estate investment has the potential of running into millions due to the cost of the essential requirements that will be needed. However, an investment analysis has been undertaken to evaluate the feasibility of the proposed investment. The business proposal evaluation has been undertaken using financial tools to measure the economic value of undertaking the investment. In addition, the investment proposal investigates the optimal financing approach that should be adopted by the investor based on the cost of financing an investment will incur to actualize the operations. Undertaking the financial plan of the investment is essential since it helps in validating the feasibility of the project to the financiers in suppor ting it implementation. Consequently, the investment proposal evaluation has played a critical role in establishing the significance of the investment and the optimal investment direction that should be adopted. In order to undertake the investment, the investor will need financial resources for operation of the investment activities. The amount of financial resource that is estimated to be required in undertaking the investment is à £100,000. Consequently, the financial resources will need to be solicited from the available sources. Sources of finance could be long-term, medium term or short-term depending on the favorable source for the investor. The long-term sources of finance are sources that exceed one year of reimbursement. The components of long-term debts are made up of equity and long-term debts (Ingram & Albright, 2009). Medium
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