Financial Management - Investment Evaluation

Running head: FINANCIAL MANAGEMENT
Financial Management
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL MANAGEMENT1
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Critical Reflection............................................................................................................................8
References......................................................................................................................................10

FINANCIAL MANAGEMENT2
Executive Summary
The aim of the report is to prepare an investment evaluation for the project that is undertaken by
a budding entrepreneur who wishes to carry out a business activity in the Canadian Market by
selling chocolates. The analysis for the investment has been well carried out with the help of
whole operational detail that was presented to us in which all the information has been well
incorporated for analysis purpose. All the cash inflows that is from Core Business Activity to
Selling Packaged Boxes of Chocolate to Investment Incomes has well been recorded as cash
inflows. On the other hand, key cash outflows like variable costs, packaging & shipping charges,
monthly rent, credit card remittance fees, salary & wages and other expenses was recorded for
key cash outflows. The analysis of the project has been well done based on the Net Present Value
that was generated for the time period in which relevant net cash flows flowing were recorded.

FINANCIAL MANAGEMENT3
Introduction
The analysis has been well done for the investment project that has been well considered
by Mr. Isaac who is evaluating the chocolate business that would be operating in the Canada and
would be having its business operations carried from there. The aim of the business attempts to
explore the Canadian retail market by bringing German fine chocolates from Alpen Choc, which
is an established artisan manufacturer of the fine chocolates that would be offering innovative
flavors to Mr. Isaac who in turn would be selling the same to the retail consumers and as well as
to the business consumers (Levin and Hallgren, 2017). Mr. Isaac would be giving an upfront
payment for the rights that have been specifically given to him for a sum of seven year and
which has also been considered as the time period of project investment. The cash flow analysis
has been done into two parts for the projects whereby the first part include a monthly cash flow
analysis that has been drawn for a sum of two years for the project. On the other hand the cash
flow analysis has finally been done for a sum of seven years whereby the feasibility of the
project has well been assessed. The financial viability of the project was checked with the help of
the net present value method which helped us in checking the financial viability of the overall
project developed.
Discussion
There were various set of assumptions that have been well developed for the project in
order to well complete the financial projections for the project are as follows:
Initial Investment: The initial sum of investment that the company would be investing
comprises the upfront payment that would be would be around 400,000, which in turn would