SCIENCE ASSIGNMENT(NO PLAGIARISM, A++ WORK, QUALITY, ON TIME)

Science Discussion (Financial Analysis of Stadium Construction Project)

Student’s Name

Institutional Affiliation

Introduction

The amount of money required depends on the number of fans to be accommodated in the stadium.

The installation requirements of a sports arena are also recommended by this document to suit the welfare of the fans and the players.

Management of funds is a key factor to be considered in any construction works.

This document is aimed at discussing the financial management of this project and its analysis.

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Outline

The following is an outline of this presentation.

Project evaluation

Interest

Profit and loss statement

Return on Investment

Profitability

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Project Evaluation

Having known that the value of money appreciates with time, there is a consideration of how the amount invested will keep on earning interest within the 5 contractual years.

Identifying factors that can hinder the rate at which the amount invested from appreciating is also important. They include inflation, political crisis etc.

The Net Profit Value analysis will provide information about the cash flow over the entire investment.

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Interest

The rate at which the amount of money invested will appreciate within the five years should remain constant to avoid losses

Also, the initial value of money invested should not be added to the revenue received so as to clearly mark the trend of appreciation/depreciation.

Profit and Loss Statements

These statements shall be considered to determine the profitability of investing with the sports club.

Statements shall also give information on the progress of the previous investments.

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Return on Investment

The main aim of any business is to earn a living out of the investments made. Therefore, the return got from the investments will determine whether the investment was viable or not.

Earning more with little or no expenditure is usually the desire of any investor.

Profitability

This will be calculated by the profit margin ratio and income margin ratio

Net profit depends on the total gross sales in a specific period.

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References

Irena, M., & Mariana, B. (2017). The time value of money in financial management. Retrieved from http://stec.univ-ovidius.ro/html/anale/ENG/2017-2/Section V/19.pdf

SHROTRIYA, V. (2019). TIME VALUE OF MONEY–THE CONCEPT AND ITS UTILITY

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