Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Choi, Gowda, Szabo, Davidson, Salt, Hauk Excel Business Model 97 03(1)111
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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
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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. 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. 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. % 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. 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