Items selected where Question includes Investment or Answer includes Investment
Questions & Answers
Q: Can this software be used for the valuation insurance companies? what amendments would need to be made?
A: Yes, it is designed for small business but can be applied to any business as it simply applies a return on investment approach which is applicable in all cases. No amendments are required.
Q: My question is related to ROI: I'm trying to use your model to help me develop an ROI figure based on current expenses and income plus a $200,000 investment in the business with a pessimistic retrun of 10%, expected return of %15 and optimistic return of %20. Can you tell me how to enter my data so I can obtain the ROI model?
A: I am not entirely sure what your require as if the income/expenses are set then the ROI% determines the Investment ie your $200,000? The sensitivity analysis built in to the model allows you to consider changes in your inputs to determine how sensitive the outcome is to errors. However if what I think you are trying to achieve is correct the following may help. Input the values for your business on the input sheet. On the valuation sheet set the Required Return on Investment (blue cell) at 15% the calculated Current Expected Valuation in the yellow cell below this is the valuation at 10% ROI ie if you invested this amount in the business the return would be 15%. Change the Required Return on Investment value to 10% and 20% to see your pessimistic and optimistic values. The valuation will decrease as the % is increased ie to achieve a higher return on the same profit the investment in the business must be less. Hope that helps.
Q: I am looking for an investment analysis tool that I can use for justifying an investment in a new business outside the US. I have a simplistic dcf / payback analysis that is typically used for capital expenditure justification. I am looking at your "Business Valuation Model" but this doesn't seem to take into account initial and recurring capital expenditures required. Do you have a different model or models you can suggest?
A: The valuation model provides both an interest expense which reflects the cost of capital and a Depreciation Allowance which is a capital allownace based on the value of Business Assets and Asset life. So if you have operational capital requirements you can determine the cost of capital ie the interest rate appliacable if the capital was fully financed and apply this as a fixed Interest expense. If the capital relates to depreciaing assests then then it should be reflected as Depreciation (related to Assets and Asset life inputs). If you prefer you can also simply add a recurring capital requirement as an Other expense item. If the required capital varys with sales then enter it as a Varible Other item, if the required capital tends to be a fix overhead amount included it as a Fixed Other item. FYI we have just released a browser based valuation model that applies discounted cash flow to determine NPV it is based on the same methodology as the Business Valuation Model and Business Analysis Modules. It can be assessed from https://bizpep.com/businessanalysis.html re ..
Q: I want to review my investments over the past 6 years and compare the performance to the S&P as well as other mixes such as: 100% bonds, 75/25, and 50/50. Will your softward do this?
A: The software is designed to project future performance not review past performance with Inputs applying Growth %'s to develop projections. As such it is not ideal for comparing past performance although you could build a portfolio scenarios based on past performance and investigate outcomes. You can give the software a test run for free from https://bizpep.com/uinvest.html , the Help file https://bizpep.com/uinvest.html provides full details .
Q: Will your Investment Analysis Software run on Windows Vista, Ultimate,64Bit?
A: Investment Analysis Software runs directly in your browser it simply requires a current generation browser with java script enabled to function. As long as you have a current browser the operating system does not matter. You can give it a test run directly from our server at https://bizpep.com/uinvest.html .