Password to UnProtect All Worksheets:
12345


Team Name                 Mpyreon (Team B)
Set                       MKTG 1J...
Password to UnProtect All Worksheets:
12345



Investment Decisions
Investment Term for 4 years
                          ...
1. Input a Minimal Accepted Rate of Return (what
                                          the company wants to gain each ...
NPV          IRR         IF
1   -$ 6,602.69         6%        NO
2   -$ 5,168.36         7%        NO
3    $ 16,005.05    ...
% of businesses
                Year           still in the market
                 0                             100%
   ...
Investment
                                                 Year 1         Year 2          Year 3          Year 4
        ...
TEAM 1
Year 1

          Month            Total Costs                 Total Revenue
                      1     $         ...
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Choi, Gowda, Szabo, Davidson, Salt, Hauk Excel Business Model 97 03(1)111

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Choi, Gowda, Szabo, Davidson, Salt, Hauk Excel Business Model 97 03(1)111

  1. 1. Password to UnProtect All Worksheets: 12345 Team Name Mpyreon (Team B) Set MKTG 1J Team Members Choi Ying Ying, Davidson Graham, Gowda Natasha, Hauk Chris, Szabo Courtney Date ######## Purpose To determine which investment is worth investing in
  2. 2. Password to UnProtect All Worksheets: 12345 Investment Decisions Investment Term for 4 years Look up Team Team 3 Net present value of this investment (NPV) $16,005.05 Internal Rate of Return (IRR) 20% Is it worth investing? YES Cash Flows Estimates for 4 Years Minimal Accepted Rate of Return Project: N.E.W business venture Rate of Return (Rough Estimate) Team 1 10% 14% Team 2 10% 17% Team 3 10% 57% Team 4 10% 79% Team 5 10% 86% Team 6 10% 7%
  3. 3. 1. Input a Minimal Accepted Rate of Return (what the company wants to gain each year) 2. Input what amount (in $) you want to invest in the company in the Investment Cost column. 3. Input the expected returns (projections) of the company each year. Estimates for 4 Years -------------Expected Returns--------------- Investment Total Revenues Year 1 Year 2 Year 3 Year 4 Cost for 4 years -$ 70,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 80,000.00 -$ 70,000 $ 20,000 $ 20,000 $ 21,000 $ 21,000 $ 82,000.00 -$ 70,000 $ 20,000 $ 30,000 $ 30,000 $ 30,000 $ 110,000.00 -$ 70,000 $ 20,000 $ 35,000 $ 35,000 $ 35,000 $ 125,000.00 -$ 70,000 $ 20,000 $ 30,000 $ 40,000 $ 40,000 $ 130,000.00 -$ 70,000 $ 10,000 $ 15,000 $ 25,000 $ 25,000 $ 75,000.00 Avg. Revenue $ 100,333.33 Minimum $ 75,000.00 Maximum $ 130,000.00
  4. 4. NPV IRR IF 1 -$ 6,602.69 6% NO 2 -$ 5,168.36 7% NO 3 $ 16,005.05 20% YES 4 $ 27,308.93 25% YES 5 $ 30,348.34 26% YES 6 -$ 12,654.19 2% NO
  5. 5. % of businesses Year still in the market 0 100% 1 85% 2 70% 3 62% 4 55% 5 50% 6 47% 7 44% 8 41% 9 38% 10 35% % of businesses still in the market after 10 years 100% 90% 80% 70% Percentages 60% 50% 40% 30% 20% 10% 0% 0 1 2 3 4 5 6 7 8 9 10 Year
  6. 6. Investment Year 1 Year 2 Year 3 Year 4 Cost -------------Expected Returns-------------- Team 1 $ 70,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 Team 2 $ 70,000 $ 20,000 $ 20,000 $ 21,000 $ 21,000 Team 3 $ 70,000 $ 20,000 $ 30,000 $ 30,000 $ 30,000 Team 4 $ 70,000 $ 20,000 $ 35,000 $ 35,000 $ 35,000 Team 5 $ 70,000 $ 20,000 $ 30,000 $ 40,000 $ 40,000 Team 6 $ 70,000 $ 10,000 $ 15,000 $ 25,000 $ 25,000 Expected Returns of Each Team Year 4 Team 6 Year 3 Team 5 Team 4 Year Year 2 Team 3 Team 2 Year 1 Team 1 Investment Cost $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Money
  7. 7. TEAM 1 Year 1 Month Total Costs Total Revenue 1 $ 81,000 $ 40,000 2 $ 10,000 $ 40,000 3 $ 10,000 $ 40,000 4 $ 10,000 $ 40,000 5 $ 10,000 $ 50,000 6 $ 10,000 $ 70,000 7 $ 9,500 $ 80,000 8 $ 9,500 $ 90,000 9 $ 9,500 $ 70,000 10 $ 9,500 $ 60,000 11 $ 9,000 $ 50,000 12 $ 9,000 $ 50,000 Team 1's Cost vs. Revenue $100,000 $90,000 $80,000 $70,000 $60,000 Total Costs Money $50,000 Total Revenue $40,000 $30,000 $20,000 $10,000 $- 1 2 3 4 5 6 7 8 9 10 11 12 Months

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