FIN571 Week 6 Learning Team Reflection

Running Head: LEARNING TEAM REFLECTION 2

Learning Team Reflection

Jennifer Bailey, Nicole Brown, Veronica Delgado

FIN/571

November 3, 2014

David Binder

Learning Team Reflection

The following is a reflection based upon a business started by a women named Peggy Parks, a building code auditor. Peggy initially invested $56,000 in seven alpacas making at least $15,000 in the first year by breeding them and receiving two baby alpacas. These alpacas are tangible assets to Peggy. Many investors turn to tangible assets when the market is low but they do not always get a return. (Parrino, Kidwell, & Bates, 2012). Peggy’s advice is for everyone to do their research before investing in tangible assets. Identified within this reflection is a capital improvement that could help Peggy with her business.

Capital Improvement

According to “Investopedia” (2014), capital improvement is “the addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property's overall value or increases its useful life.” As a capital improvement Peggy should consider in opening a drive in farm petting zoo. A petting zoo can be a fun and profitable business opportunity for animal lovers (Kramer, 2014). The alpacas that Peggy has in her farm are already being breed giving her the option to have this farm petting zoo. Once she decides to open the farm petting zoo, she will need to make sure that there are enough acres for all her alpacas. It will be secured because she already has the proper fencing in her farm to prevent from her alpacas escaping. There will be a concession stand, bathroom facilities, safe paths for walking, and other type of entertainment. This implementation will be fruitful for Peggy because it will expose her business and will increase her profits by charging a fee at the entrance. This fee will cover the concession stand, access to pet the alpacas and for those that are interested in breeding these types of animals can be provided with information.

Conclusion

Reference

Investopedia. (2014). Retrieved from http://www.investopedia.com/terms/c/capitalimprovement.asp

Kramer, M.H. (2014). How To Start A Petting Zoo Business. Retrieved from http://animalcareers.about.com/od/AnimalBusiness/a/How-To-Start-A-Petting-Zoo-Business.htm

Parrino, R., Kidwell, D. S, & Bates, T. W. (2012). Fundamentals of corporate finance (2nd ed). Hoboken, NJ: Wiley