The first business venture that came about was the Real Estate opportunity. This is a business that one must take one must not just take the local and …show more content…
In light of the assessment done on the data provided about all three investment opportunity my proposal is to invest in the Just Hats retail store. Even though the Real Estate investment would have grossed a higher profit following 10 years, the risk is still too high with a 10 and 15 percentage rates respectively. The expected value for the investment recommended, the Just Hats retail store currently sits at $3,430,000 which is much more than the expected value of the Real Estate investment opportunity which came out to $3,325,000 and the Cupcakes and so forth at …show more content…
The risks that ties into investing in either the Real Estate and the Cupcakes and so forth business were not ones to ignore, as there was a 15 to 20 percent chance of not making a profit following 10 years. However, the probability of much larger earned revenue is justified regardless of the dangers highlighted in the analysis provided above. The likelihood of income resulting from any of these investments is way over $2,000,000 and these are at a medium NPV yet the possibility of $4,000,000 after 10 years makes the chance of taking a risk more than justified, despite all that maybe involved. Once again from the assessment of the three investment opportunities I highly recommend the Just Hats retail store with an expected value of $3,430,000 following 10 years. Taking all the probabilities and risks highlighted into consideration it is the better