Do you plan to invest your own or your company’s money into new equipment or a new store? Do you plan to take on a new product group for your portfolio? Will your investment be profitable? What factors have the greatest impact on the results of the new project, how quickly will it be cash positive? What is your break-even point? How can you evaluate / compare different scenarios for product development?
AG Capital’s investment project analysis is the service that answers these questions. As a part of the work we produce a custom financial model that enables you to create a financial plan for the new project with flexibility to change the most important assumptions.
- Ability to change important assumptions including modelling of yet unknown costs for the new project (for example, model different levels of rent for the premises while the negotiations are taking place, or the number of employees);
- Calculation of net present value of the project (NPV) – this indicator will help to determine whether the new project should be undertaken;
- Calculation of the total investment funds needed and the determination of the critical month in terms of cash flow;
- Comparison of different sales scenarios (e.g., minimum, maximum and average scenarios);
- Create a break-even scenario to determine the break-even level of sales;
- Project cash flow chart.
Usually we make these Investment ROI calculations for investor’s own needs to support their investment decision making and price them in the range from 500 to1500 euro (depending on complexity). As a result our clients get a clear view of the project they plan to invest and about the main risk factors for their investment. Quite often we are able to save many thousands and millions to our clients by persuading them not to invest in too risky projects.
We have made available one of the ROI models for your review. This one is a model we have created for a client who wanted to open a new restaurant.
New Restaurant ROI Analysis Demo