Budget for an Anaerobic Digester

Running head: BUDGET FOR AN ANAEROBIC DIGESTER
Budget for an Anaerobic Digester
Name of the Student
Name of the University
Author note

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BUDGET FOR AN ANAEROBIC DIGESTER
Table of Contents
Financial aspect:..............................................................................................................................2
Sources and timing of inflow of funds:.......................................................................................2
Amount of cash available to the organization post implementation of mobile app:.......................3
Projected financial position of the company:..................................................................................3
References:......................................................................................................................................6

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BUDGET FOR AN ANAEROBIC DIGESTER
Financial aspect:
Sources and timing of inflow of funds:
The sources of funds would be investment of the entrepreneur, loan from bank and other
investments. The timing would be at the beginning of the years. Dahlan, Mappigau and
Khaerani, (2014) mention that the in the initial entrepreneurs have to in generation of capital due
to their lack of assets which act as securities while borrowing loans from banks and financial
institutions. That is why it has been assumed that the entrepreneur in order launch mobile app
would invest his own capital at least in the initial years. Keeping in line with the view, the capital
invested in the budget has been assumed as $1000000 and $ 1500000 in the first and second year
respectively. It has been also been assumed that the entire capital investment would be divided
equally in all the four quarters (Guzmán and Lussier 2015).
The next source of funding to an entrepreneurial venture would be venture capital from
micro-finance organizations (Hsu et al. 2014). In the light of this fact, it would be assumed that
the entrepreneurial venture involving mobile app launch would get venture from banks under
their entrepreneurial loan segment. It has further been assumed that the entrepreneurial venture
has got loan from Square1 bank (Square1bank.com. 2018). It has been assumed that the rate of
interest of loan would be 6 percent which amounts to 600 considering the loan amount is $
10000. The rate if interest on loan is an expenditure and would appear in the use of cash section.
The third source of funding would be the personal investments by the entrepreneur.
Wadhwa, Phelps and Kotha (2016) mention that investment of entrepreneurs can be used to
contribute to the financial base of entrepreneurs at initial level. It has assumed that the
entrepreneur would invest $ 10000 and $ 5000 in the first and second years respectively.