Project Report: Analysis of Investment Proposals for Investors

This project report presents an analysis of two investment proposals: a restaurant venture and the purchase of financial securities. The report, intended for investors, utilizes budgeting and capital budgeting techniques to evaluate the potential returns and risks associated with each opportunity. The r...Read More

Running Head: business report 1
Project Report: Business Report

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Executive summary
Mark and Paul, two marketing student has presented 2 investment proposal in front of
the investors to analyze them and make an investment into them so that the worth of invested
amount could be enhanced. In this report, for the assistance of the investors, both the projects
have been analyzed so that the investors could take a better decision.

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Contents
Introduction.......................................................................................................................4
Nature and scope of investment........................................................................................4
Restaurant Investment opportunity...................................................................................5
Sales budget..................................................................................................................7
Labor budget.................................................................................................................7
Cash budget..................................................................................................................7
Overview and analysis of budgeting reports................................................................8
Practical issues linked with investment........................................................................8
Second opportunity...........................................................................................................8
Comparison of investment opportunity............................................................................9
Conclusion:.......................................................................................................................9
References.......................................................................................................................10
Appendix.........................................................................................................................11

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Introduction:
It is a case in which Mark and Paul, two marketing student has presented 2 investment
proposal in front of the investors to analyze them and make an investment into them so that
the worth of invested amount could be enhanced. In this report, for the assistance of the
investors, both the projects have been analyzed so that the investors could take a better
decision. First investment proposal is related to the restaurant proposals where the investors
would invest into the restaurant to enhance the worth of the invested amount. Further, second
investment proposal is related to buying some financial securities to enhance the worth of the
invested amount (Lafond and Roychowdhury, 2008). In first investment, various figures and
amount have been analyzed to identify the total return from the investment. More, it has been
found that still, various techniques would be required for the investors to analyze the first
investment proposal. In this report, budgeting techniques have been analyzed to identify the
performance of the investment proposal and the total return which would be got by the
investors through this investment project. In second investment, various figures and amount
have been analyzed to identify the total return from the investment. More, it has been found
that still, various techniques would be required for the investors to analyze the first
investment proposal. In this report, capital budgeting techniques have been analyzed to
identify the performance of the investment proposal and the total return which would be got
by the investors through this investment project.
Nature and scope of investment:
An investment opportunity is required for every individual and organization to
manage the funds and enhance the worth of the funds through getting the return and profit.
Investment opportunity could be got by every investor at any moment of the life. These
opportunities could be anything such as investing into the new project, machineries, financial

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securities, capital market, security market, diversification of organization, new machineries
etc. Investments are the main way to adopt the market changes and according to that, manage
the invested amount. Investments have changing environment. It is not required that the
investors always get the positive return from the market. Sometimes, due to various changes
into the market and the economical changes, the investment changes could be enhanced or
deducted (Horngren, 2009). Still, an investor always looks for the high return and the
expectation to manage and enhance the worth of the invested amount. There are many ways
to identify that whether the investment would offer high return or not. In this report, there are
2 investment proposals. In first investment, various figures and amount have been analyzed to
identify the total return from the investment. More, it has been found that still, various
techniques would be required for the investors to analyze the first investment proposal. In this
report, budgeting techniques have been analyzed to identify the performance of the
investment proposal and the total return which would be got by the investors through this
investment project (Garrison, Noreen, Brewer and McGowan, 2010). In second investment,
various figures and amount have been analyzed to identify the total return from the
investment. More, it has been found that still, various techniques would be required for the
investors to analyze the first investment proposal. In this report, capital budgeting techniques
have been analyzed to identify the performance of the investment proposal and the total
return which would be got by the investors through this investment project.
Restaurant Investment opportunity:
In first investment, various figures and amount have been analyzed to identify the
total return from the investment. More, it has been found that still, various techniques would
be required for the investors to analyze the first investment proposal. In this report, budgeting

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techniques have been analyzed to identify the performance of the investment proposal and the
total return which would be got by the investors through this investment project.
According to this case, the investors would have cash in hand worth of $ 80,000. The
investors would be required to buy Machineries or equipment worth of $ 30,000,
consequently there are many other types of machinery which is also required by the investor
to buy for managing the restaurant and start the restaurant business (Deegan, 2013). Further,
company would be required to buy furniture, vehicles, and utensils and more, meals and
drinks would be required for the inventors to buy to offer the products and meal to the guest
of the restaurant.
According to the case, $ 10, 000 would be spent by the business to buy the meals in
for a week. This process would be start from the 1st June of the business and would run, till
the business run in the market. This amount would be paid back to the suppliers on 1st
August. Further, $ 20, 000 would be spent by the business to buy the drinks in for a month.
This process would be start from the 1st July of the business and would run, till the business
run in the market (Brown, Beeke and Verhoeven, 2011). This amount would be paid back to
the suppliers on 1st August. The amount of drinks would be paid back by the company
according to the %. Such as in first month, 10% of the amount would be paid in the first
month, in second month, 45% of the amount would be paid in the second month, in third
month, 45% of the amount would be paid in the third month.
Further, the labour of the company is total 6 in the number which are working for the
6 days in a week and the working hours of the company is 6 hours in a day. Rate of the labour
is $ 23 per labour hour and the total week in a month is 4. Further, $ 10,000 would be
withdrawn by the company’s investors every month. The total overhead of the company is
$5000 per month and the sales of the company would be 20000 meals in first month, 18000

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meals in second month, 18000 meals in third month and 22000 in forth month. The Average
selling price of the products is the $ 45 (Brewer et al, 2005).
According to the, requirements and the case study, budgeting techniques have been
analyzed. Following are the details of the budgeting technique:
Sales budget:
Sales budget is a financial statement report that express the user about various future
prediction related to the products and services which would be sell by a company. Sales
budgeting reports are prepared by the organizations to analyze the total unit which could be
sold and the total income from sales (Needles, Powers and Crosson, 2013). This helps the
business to make the next steps accordingly.
According to this case, the sales of the company would be 20000 meals in first month,
18000 meals in second month, 18000 meals in third month and 22000 in forth month. The
Average selling price of the products is the $ 45.
Labor budget:
Labour budget is a financial statement report that express the user about various
future prediction related to the total working hour and rate per hour which would be paid by a
company. Labour budgeting reports are prepared by the organizations to analyze the total
labour hour which would be required for managing the business. This helps the business to
make the next steps accordingly (Nobes and Parker, 2008).
According to this case, the labour of the company is total 6 in the number which are
working for the 6 days in a week and the working hours of the company is 6 hours in a day.
Rate of the labour is $ 23 per labour hour and the total week in a month is 4
Cash budget:

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Cash budget is a financial statement report that express the user about various future
prediction related to the cash outflow and cash inflow. Cash budgeting reports are prepared
by the organizations to analyze the total outflow and inflow which could be got through total
revenue and the expenses. This helps the business to make the next steps accordingly.
According to this case, the cash inflow and outflow varies each year. There is no
similarity in the cash flows of the company (Bierman, 2010).
Overview and analysis of budgeting reports:
Thus according to this case, it has been found that the budgeting reports of the
company would offer helps the business to make the next steps according to the cash budget,
sales budget and labour budget of the company.
Practical issues linked with investment:
Various practical issues could be linked in this investment opportunity such as
management of the amount, economical issues, internal issues and the external issues (Van
der Stede, 2001).
Second opportunity:
In second investment, various figures and amount have been analyzed to
identify the total return from the investment. More, it has been found that still, various
techniques would be required for the investors to analyze the first investment proposal. In this
report, capital budgeting techniques have been analyzed to identify the performance of the
investment proposal and the total return which would be got by the investors through this
investment project (Radebaugh, Gray and Black, 2006).
Initial Cost
$ -
3,90,000

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Cash Inflows
June
$
1,00,000
July
$
2,30,000
Aug
$
1,90,000
Sept
$
1,40,000
Comparison of investment opportunity:
After evaluating both the investment, it has been found that both the business would
offer high return to the investors now it depends over the investor to find a better plan
according to their suitability as both the opportunities are different from each other.
Conclusion:
Thus, it could be said that investment plays a crucial role and is required for everyone
to manage the funds and enhance the worth of the invested amount.

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References:
Bierman, H., (2010). An introduction to accounting and managerial finance: a merger of
equals. World Scientific.
Brewer, P.C., Garrison, R.H. and Noreen, E.W., (2005). Introduction to managerial
accounting. McGraw-Hill Irwin.
Brown, P., Beekes, W. and Verhoeven, P., (2011). Corporate governance, accountin
Deegan, C., (2013). Financial accounting theory. McGraw-Hill Education Australia.
Garrison, R.H., Noreen, E.W., Brewer, P.C. and McGowan, A., (2010). Managerial
accounting. Issues in Accounting Education, (25(4), pp.79(2-793.
Horngren, C.T., (2009). Cost accounting: A managerial emphasis, 13/e. Pearson Education
India.
Lafond, R. and Roychowdhury, S., (2008). Managerial ownership and accounting
conservatism. Journal of accounting research, 46(1), pp.101-135.
Needles, B., Powers, M. and Crosson, S., (2013). Financial and managerial accounting.
Nelson Education.
Nobes, C. and Parker, R.H., (2008). Comparative international accounting. Pearson
Education.
Radebaugh, L.H., Gray, S.J. and Black, E.L., (2006). International accounting and
multinational enterprises. New York, NY: John Wiley & Sons.
Van der Stede, W.A., (2001. Measuring ‘tight budgetary control’. Management Accounting
Research, 1(2(1), pp.119-137.

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Appendix: