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Financial Feasibility of Flying Cars
Financial Feasibility of Flying Cars
Name
Institution
Total Startup Cash Needed (to Make First Sale)
Capital Investments Amount
Capital Investment Amount ($)
Property 1,125,000
Furniture & Fixtures 1,131,000
Computer Equipment 1,150,500
Other Equipments 1,120,000
Vehicles 1,170,000
TOTAL 5,696,500
Feasibility Analysis
Operating Expenses Amount
Operating Expenses Amount Amount ($)
Legal, accounting, and professional services 12,000
Advertising and promotions 15,500
Deposits for utilities 115,500
Licenses and permits 112,000
Prepaid insurance 153,000
Lease payments 124,000
Salary and wages 148,000
Payroll taxes 118,500
Travel 12,500
Tools and supplies 15,000
Starting inventory 110,000
Cash (working capital) 1,200,000
Miscellaneous Expense 17,200
Total Startup Cash 2,152,000
Comparison of the Financial Performance of Proposed Venture to Similar Firms
Assessment Tool
Annual Sales
Sales Year 1 Year 2
Annual Sales 1,395,000 3,348,000
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
Terrafugia 2011 2012
Total Sales 13,950,000 12,624,000
The company estimates that each flying car would be sold at the prevailing market prices that is current at $279,000
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’s market share is expected to increase in the coming years and therefore more revenue will be generated from its sales.
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.
Fear of Choosing a College Major
Fear of Choosing a College Major
Student’s Name
Date
Institutional Affiliation
Introduction
Students are flooded with questions about their career interests from a young age. This pressure is especially pronounced among college-going students as different individuals are interested in their choice. Some of the most significant sources of pressure college students experience in choosing college majors include the need to please one’s parents, the need to improve one’s economic status, the need to choose a career that pays well and is fulfilling, high costs of college education and the difficulties of predicting the employment market. Though these factors increase the fear of choosing a college major, I believe that this fear should not force one to pursue a career of no interest to them. Moreover, choosing the wrong college major is not the end of the world.
Education is largely seen as the key to upward social mobility. As education is a source of multidirectional influence, people can use it to create better lives regardless of their social class. Through education, people explore latent potentials, enhance intellect, and increase their chances of getting better jobs and improving their economic status (Nazimuddin, 2015). Due to these widely known benefits, college-going students’ parents are often very invested in their children’s education. Moreover, access to college education is a step closer to attaining a well-paying job and improved economic status. Due to the high-interest parent have in the education of their college-going children, students often have a hard time choosing majors as they directly influence the type of career one gets into and subsequently one’s economic status in the future. Therefore, choosing a college major is a daunting task of pleasing one’s parents, pursuing one’s passions, and getting into a career that is fulfilling and well paying.
Choosing a college major is equal to choosing a career. Ideally, though one’s choice in picking a college major should be influenced by passion and interest, it is widely known that passion does not always pay. For instance, numerous data show that women are more likely to pursue service careers, while men are inclined towards technical jobs. Generally, technical careers pay more than service-oriented careers hence the wide pay gaps between men and women after college (Piazzalunga, 2018). This conflict in the major one should pursue even more evident in my life as my parents constantly suggest different college majors. For instance, my father has mostly encouraged me to pursue technical majors such as computer science while my mother is insistent that I choose a major in the service industry as it is more fulfilling. While I understand the motivations behind their recommendations, I am at a loss on how I can fulfill both their wishes while remaining true to my future goals and professional interests. One certain thing is that I want to pick a major that will guarantee that I get into a career that is both well-paying and fulfilling.
The high costs associated with a college education make choosing a major overwhelming. The cost of higher education has significantly increased over recent decades. This problem is especially complex as it is influenced by multiple factors such as politics, inflation rates, the economy, and government appropriations (Feldman, 2019). While one can easily change their college major, the fear that the wrong choice or constant changes will result in added semesters and tuition fees increases the pressure to choose the best college major. I feel greater pressure to pick a major that satisfies all parties involved on an individual level. This added pressure is based on knowing that my parents will be paying for my tuition fees. Furthermore, I do not want to pick a college major that I will later drop as it will result in higher tuition fees and further increase my parents’ financial burden.
Lastly, choosing a college major is challenging as it is difficult to predict the employment market. Advancements in technology have significantly affected marketplace trends. As a result, colleges and higher education institutions are forced to develop clusters of new programs, further adding the number of majors offered. The increase in the number of courses offered makes it even harder for students to select a particular major to choose from. Also, as technology increasingly advances, there is a strong possibility that the jobs I will be applying for in the future do not exist today. The major that I choose to pursue may not necessarily lead me to a job as new careers will develop as technology influences professional trends.
Conclusion
Choosing the wrong major is not the end of the world. College is a period of choices as one constantly understands themselves and grows into their person. Though there is great pressure and fear associated with choosing college majors, I believe that this fear should not force one into pursuing something that is not of interest to them. Furthermore, many people have changed their careers regardless of their age; therefore, choosing and changing a college major is part of normal life.
Reference
Feldman, D. H., & Romano, R. M. (2019). Drivers of community college costs and prices. Change: The Magazine of Higher Learning, 51(3), 21-27.
Nazimuddin, S. K. (2015). Social mobility and role of education in promoting social mobility. Int J Sci Eng Res, 3, 176-179.
Piazzalunga, D. (2018). The gender wage gap among college graduates in Italy. Italian Economic Journal, 4(1), 33-90.
Financial crisis and banking industry
Financial crisis and banking industry
Name
Institutional affiliation
Financial crisis and banking industry
Introduction
The U.S banking industry has severely weakened as a result of the current financial crisis. The number of banks falling is rising, as financial crisis continues, and bank stocks are plummeting. As a result of this crisis, banks are tightening their lending standards and terms to exceptional levels. The tightening experienced could be detrimental as it could derail or even undermine the recovery of the economy. Financial crisis is the period when financial assets lose a greater fraction of their nominal value. Financial crisis leads to paper wealth loss but mainly not the real economy (Cao, 2012). The essay will explain how financial crisis affects the banking industry.
The current global economic downturn and financial affected world’s economy negatively and increased uncertainty. Financial crisis may have an important and the country and may lead to inflation and cause huge risks to the environment. Ciro states that the greatest organizations affected by financial crisis are the smaller banks. Banks face risks as a result of economic growth slowdown including credit risks. Default loans are small, but are increasing, and this is expected to grow tremendously. Various signs associated with credit risks include the bankruptcies reported (2012).
Financial crisis also provides a platform for banks to tighten their loan lending. The current financial crisis has made banks tighten their loan rates by lowering the discount on huge loans and increasing the risk premium for more risky loans. The price for non- commitment loans was also significantly higher in comparison to commitment loans. Financial crisis also affects shareholder’s equity (Cao, 2012). During the current financial crisis, many banks had to reduce shareholder’s equity as a way of sustaining the business cycle. Financial crisis leads to the banking industry to assume a better risk management program.
According to Ciro, credit evaluation is an important factor in banks. The current financial crisis made it possible for banks to evaluate their credit evaluation plan critically. The evaluation plan requires banks to obtain more information regarding the borrower to reduce the risks involved (2012). Financial crisis also makes banks eliminate some loan products to new loan borrowers. Financial crisis has also proved difficult to banks due to the creation of competition. The competition is attributed to deposits made making larger banks benefit and offer huge interests. Financial crisis also brings success to commercial banks as it offers them the opportunity to claim their deposits lost to huge institutions (Cao, 2012).
Conclusion
The current financial crisis proves difficult to all institutions, regardless of their conservative strategies and their capitalization. The current crisis thus brings better news and opportunities to various banks. Banks can increase their deposits, better themselves, and even gain new customers, if they strive to serve customers without drifting away from traditional practices.
References
Cao, J. (2012). Banking regulation and the financial crisis. Abingdon, Oxon: Routledge.
Ciro, T. (2012). The global financial crisis: Triggers, responses and aftermath. Farnham, Surrey: Ashgate Pub.