Explain and justify the ventures potential success Essay

Explain and unblock the ventures potential success - Essay ExampleSince financial risk is connected with inclusion of debt capital, this implies that if there ar no debt funds hence there entrust virtually be no financial risk. This besides implies that activities which are totally financed by equity convey no financial risk. Subsequently, equity capital has the semipermanent potential for generating superior go pasts for the investors and is thus considered as appropriate source of finance especially for new employment ventures.The investment appraisal techniques reveal that the net present value of investment is 19,538.43 with an IRR of 29 percent. As the return on investment is more than cost of capital, it is apparent that project is executable and investors may accept this project. It is also apparent that budgeting will contribute towards the success of the business venture. Below is an outline of the anticipated budget as well as pricing structure for the business vent ure.The average per unit cost of delivering pizza is pass judgment to be 20 for sale of 8,825 units (in first year) and considering the demand of product and current competition in market, the prudence could expect sales turnover of around 176,500. This means that average revenue per unit of pizza delivered will be 31.14 (shown in price chart above) making a profit of 11.14 per unit. The pricing structure is viable since it will enable the business venture to raise enough revenue to sustain its operations as well as to generate profits. Essentially, the aim of business is to make profit and this is achievable since our products are in all probability to attract more