Investment Analysis in a New Hair Product Aroma Oil Assignment

Investment Analysis in a New Hair Product Aroma anoint - Assignment ExampleConsumer trend buying smaller and proportionately more expensive packs. Consumer trend buying smaller and proportionately more expensive packs. Brand loyalty heavy promotion encourages consumer switching and hampers crisscross loyalty. Competitors Spritz from Fructis, Procter & Gamble, LOreal group. Consumers tend to shop for promotions and new products The sum of money initial investment for installation of kit and caboodle and Machinery to manufacture the AROMA hair oil is $ 150,000 and for working capital $50,000. A total investment of $ 200,000 is necessitate for activation of the project. The Operating Expenditure for the year is estimated at $ 1,573,988. The Production capacity of machinery is estimated at 250,000 bottles per month The devote value of an initial investment of $ 200,000 invested at 3% at the end of the year will rifle $ 200000(1+0.03) = $ 206,000. The net return is $ 6,000 only as against $ 205,997 estimated as net profit for the first year subsequently depreciation. The initial investment for installation of this project is $200,000 and its operational cost for one year is as $ 1,573,988. The total cost comes to $1,773,988. The benefits from sales and operational activities are estimated at $ 1,809,985. This yields a net present value NPV of $ 35,997 which is 18% return on Investment. The return on a bank deposit is only 3% per annum whereas in this case, the return on investment is 18% within one single year. The return is very cute and the scope of growth is very high. There also exist long-term benefits in terms of expansion and addition of new hair care products. It is therefore suggested that the investment for this venture is made for the benefits ofall