\ufeffFinancial Feasibility of Flying Cars<\/p>\n
Name<\/p>\n
Institution<\/p>\n
Total Startup Cash Needed (to Make First Sale)<\/p>\n
Capital Investments Amount<\/p>\n
Capital Investment Amount ($)<\/p>\n
Property 1,125,000<\/p>\n
Furniture & Fixtures 1,131,000<\/p>\n
Computer Equipment 1,150,500<\/p>\n
Other Equipments 1,120,000<\/p>\n
Vehicles 1,170,000<\/p>\n
TOTAL 5,696,500<\/p>\n
Feasibility Analysis <\/p>\n
Operating Expenses Amount<\/p>\n
Operating Expenses Amount Amount ($)<\/p>\n
Legal, accounting, and professional services 12,000<\/p>\n
Advertising and promotions 15,500<\/p>\n
Deposits for utilities 115,500<\/p>\n
Licenses and permits 112,000<\/p>\n
Prepaid insurance 153,000<\/p>\n
Lease payments 124,000<\/p>\n
Salary and wages 148,000<\/p>\n
Payroll taxes 118,500<\/p>\n
Travel 12,500<\/p>\n
Tools and supplies 15,000<\/p>\n
Starting inventory 110,000<\/p>\n
Cash (working capital) 1,200,000<\/p>\n
Miscellaneous Expense 17,200<\/p>\n
Total Startup Cash 2,152,000<\/p>\n
Comparison of the Financial Performance of Proposed Venture to Similar Firms<\/p>\n
Assessment Tool<\/p>\n
Annual Sales<\/p>\n
Sales Year 1 Year 2<\/p>\n
Annual Sales 1,395,000 3,348,000<\/p>\n
Comparison with HYPERLINK “http:\/\/www.google.co.ke\/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&ved=0CH4QFjAH&url=http%3A%2F%2Fblogs.wsj.com%2Fspeakeasy%2F2013%2F01%2F23%2Fterrafugia-flying-car-is-fast-as-a-porsche-at-stopping%2F&ei=DnOFUpjzLbTA7AbH7oHABw&usg=AFQjCNFODJTl_zNh8aJPxWjnyKaQKW07rA&sig2=kLpM0-UEjAmcdQ_JGMAeNQ&bvm=bv.56643336,d.ZGU” Terrafugia<\/p>\n
Terrafugia 2011 2012<\/p>\n
Total Sales 13,950,000 12,624,000<\/p>\n
The company estimates that each flying car would be sold at the prevailing market prices that is current at $279,000<\/p>\n
In the first year of operation, the company targets selling 5 flying cars only and the number is expected to rise to 12, thus generating $3,348,000 sales revenue during the second year of operation. The company\u2019s market share is expected to increase in the coming years and therefore more revenue will be generated from its sales.<\/p>\n
Being a new company in the industry, it would be very hard for the firm to break-even especially over the first few years of its operations. The company must therefore be ready to spend more resources in promoting and advertising its new flying cars in order to gain market penetration. The limited but potential market is currently dominated by others manufactures with strong and sound financial strengths, hence relying on their economies of scale to restrict entry of new firms. For this reason new errant must spent more financial resources on its operations thus the $2,152,000 allocated for operational expenses of the firm. <\/p>\n","protected":false},"excerpt":{"rendered":"
\ufeffFinancial Feasibility of Flying Cars Name Institution Total Startup Cash Needed (to Make First Sale) Capital Investments Amount Capital Investment<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50130","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n