Entrepreneurship & Small Business Management Essay - 2

Entrepreneurship & Small Business Management - Essay Example I am hopeful that the company I would be working with would also be willing to fund my MBA for me. Thus in these two fruit-ful years I will not just be taking home a fat income but would also have completed by MBA. While pursuing my MBA , I would also be doing my cost savings. I am not keen on being head to mouth by the time I retire. I want to save up for investment later on in a business of mine. I will be saving 40 percent of my salary and it should be possible as I have no obligations at that moment. Thus at this rate in the next five years, I would have savings of above 2 Lakh dollars. I will invest this money in gold as the gold market is enjoying a huge boom these days and it is stipulated that the boom will continue for a while. By the time I graduate, I would expect my salary to have multiplied by atleast 2 folds. I would continue to keep a low-key lifestyle and would spend $60,000 per year only. The remaining amount will go in savings. I feel that all this compounded would give me more than 3 lakh dollars in the next two years. It is then when I will opt for an early retirement with the goal of getting into and starting my own business. By then I would have around 8 lakh dollars in s avings, gold and and other things. With the capital that I would have saved, I will start my own venture of a computer franchise company. The income through this company will increase by 40% every year and I would become a millionaire in just two years with net value of above 3 million in five years after

Project appraisal through discounted and non-discounted cash flow Essay

Project appraisal through discounted and non-discounted cash flow techniques - Essay Example Positive and negative values makes it easy to understand generation of profits and losses as well as assists decision makers to focus only on the highly positive items, the precious time of management can be saved by focusing on the relevant project (Fortes, 2010; Horngren, 2005). Calculations are comparatively easy and data of any finite period can be easily converted into present value of it. Net present value analysis is derived from some basic realistic and practical assumption it is based on a fact that value of  £100 today will be more than the worth of  £100 after a year. Keeping this assumption in mind a net present value of future cash inflows is calculated using a discounted rate, usually the rate of cost of capital of a company or industry this rate represents the percentage minimum requirement of return by an organization per annum. Annuity factors can also be used if cash flows are constant every year. The Net Present Value (NPV) is a useful technique to determine profitability of any item being assessed, but has few limitations as well, it only focuses on factual data that can directly hit the profit generation capabilities of an item and financial aspects only while appraising projects and does not account for the non financial aspects, areas and issue associated to that project; whereas, there is a high probability of any decision/ project to get affected by numerous external or internal non-financial events.