...purchase of $56,000 for seven alpacas. Peggy’s reasoning, because these alpacas are tangible assets, they are always in her control, unlike her struggling 401k. By the end of the first year, the investment paid off with two new baby alpacas making at least $15,000. Despite the initial success, Peggy is always looking for new ways to enhance her business. This paper will discuss capital improvements that will help her to do just that. Capital improvements are expenses connected with changes to enhance capital assets, extend their productive existence, or add to the worth of these assets. Capital improvements may improve usefulness or productivity or be renovations to the building or other structural improvements (Murray, 2014). Capital improvements can also be written off against income. Pond construction, barns, fences, driveways and parking lots are examples of expenses for breeders. Equipment such as pickups, scales, trailer, and tractors each has a suitable schedule for write-off. We have decided that it would be in Peggy’s best interest to purchase an additional male and female alpaca along with a larger barn for the animals. Alpacas are called "The world's finest livestock investment.” Alpacas also provide of extraordinary profits in the sales of offspring from your herd as well as significant tax advantages. Alpaca sales values have been good and remained steady since they were first imported to the US in large numbers in the 1980's. Alpacas continue to be in high...
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...Capital Improvements with Alpaca Growth FIN 571 8/31/2015 Professor Capital Improvements with Alpaca Growth Capital improvements and capital growth are important to the success of any organization. To be able to generate profits and revenue, organizations need to seek out capital improvements that will increase the overall growth. Capital improvements include 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” (Wikipedia, 2015). In the corporate finance video, “Stable Money Makers”, Peggy Parks did some research after her retirement portfolio lost a substantial amount of money and was not going to sustain her in retirement. She researched alpacas and invested in an alpaca farm. She was profitable the first year; however, there are ways that she can continue to grow the organization by making capital improvements that will continue to increase her success and retirement wealth. Recommendations for Capital Growth Peggy Parks' $56,000 investment in seven alpacas has provided a $15,000 return in the first year as a result of the animals' breeding, which resulted in two additional alpaca offspring. Additionally, due to recent tax changes the law provides increased benefits to alpaca farms. Capital improvements to active hands-on breeder's ranch can be written off against income. Therefore, the business opportunities listed below are recommended...
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...Stable Money Makers - Alpaca Business Betty Parks, a 49 year old building code auditor, became frustrated as she watched her retirement investment in a 401K move in the wrong direction. Specifically, Betty lost approximately 50% of her investment in the 401K, she had planned to use for retirement. After three years of research, Betty decided to make an unconventional investment of $56,000 in tangible assets, the Alpacas. Fortunately for her, she had two new alpaca babies at the end of the first year. The market value of one show alpaca is averaged at $15,000. That equates to almost 26.79% return on her initial investment within one year. The alpaca market is stable, demand is high, and Betty has the assets to continue growth in the breeding business. Team B believes that Betty should make a capital improvement in purchasing two additional male and two additional female show quality Alpacas. Research reveals that alpacas, the llama look-alike, are easy to care for and require very low maintenance. Females become sexually mature between the ages of 12 to 18 months so purchasing ones that are at least twelve months old is key. Male alpacas become sexually active between 18 months and 3 years so purchasing two around 24 months would be ideal so the breeding could start whenever Betty wanted (Northwest Alpacas, 2014). The additional investment would be somewhere between $56,000 and $60,000 dollars for the additional four alpacas (two male and two female). With the additional...
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...finances and invest in opening a business specializing in alpaca breeding. Capital Improvement Capital improvements are the costs that correlate to improving profit or creating improvements to resources. In Peggy Parks’ video, subsequently being dissatisfied with observing her retirement investments shift down the wrong path, Parks opted to investigate tactics to enhance her cash flow. Parks formulated an outcome to capitalize $56K into a truncated cost conservation alpaca farming enterprise. She grossed proceeds of $15K following a year of breeding. “Capital budgeting decisions are the most important investment decisions made by management” (Parrino, Kidwell, & Bates, 2012, p. ). In order to support Parks’ venture with growth, investors will want to catch a glimpse of a balance sheet that signifies the straightforwardness of the business’s wealth. Additionally, while capitalizing in a small business, most venture capitalists need to put together an assessment of whatever measures to capture in the result of a misfortune. For that reason, to expand the capital configurations, Parks will have to strengthen reserves to obtain additional alpacas as a result of the extreme request for their fleece to manufacture extraordinary clothing. Peggy Parks possesses the opportunities to multiply her benefits on asset by creating a supplementary capital improvement as a result of securing additional male and female alpacas. For instance if...
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...auditor, saving money into her 401 (k) for retirement. But like every American citizen, her 401 (k) suffered a drastic reduction due to the economic downturn in 2007. Worried about her retirement, Peggy decided to invest in an alpaca business, due to a high return rate, rather than depend only on the financial market. She felt she had more control with a tangible asset, such as alpacas. Alpacas are well loved and can be kept as a pet or for breeding. They have the look of a llama because of their fleece. Many people use the fleece for clothing, such as sweaters and ponchos. It is light in weight, but warm. Alpacas have a demand all over the world, tax savings for those breeding, a deferral on capital gains until the alpaca is sold, tax write off for maintenance and feeding, and they are insurable. According to the video, her investment decision was based on research that proved to be profitable. She obtained a return of $15,000 in the first year for her initial $56,000 investment. Although Peggy had a return of 27% on her initial investment on the alpaca ranch, she could take advantage of capital strategies to maximize earnings. At first, Peggy could invest part if not all, of her remaining 401(k) balance on the ranch, which could be used to buy more alpacas and breed them. It is more advantage to her to invest on a business that presented a return of 27% on the first year, than to rely on 401(k) return rates, which were around 5.4% from 1998 to 2007, with even lower rates after...
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...Corporate Finance Video: Stable Money Makers In this week's learning team reflection Team C viewed the video regarding Peggy and her Alpaca business. Peggy Park is a 49-year-old lady who started breeding alpaca because she wanted to do more with her retirement. She made a $56,000 investment. Within her first year she says that she's made at least $15,000 dollars with the birth of two alpaca babies (WileyPlus, 2014). "Of all livestock you can own, the alpaca is one of the easiest and most inexpensive to maintain. This factor contributes significantly to their overall investment value and the quality of life of those who care for them" (Davis, 2014). According to the video Peggy's decision did come with research and it appears that her research can pay off (WileyPlus, 2014). A quick internet search will reveal many hits from professionals already in the business of breeding alpaca. When looking at a capital improvement that Peggy can make there are a few items that can be observed in the video. According to Investopedia.com (2014) capital improvement is an "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". One type of capital improvement that can be made is with the fencing. Alpaca's are non-aggressive, therefore do not challenge fences; however, it is important to keep animals out. Predators are the main reason for fencing. In the video...
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...going in the wrong direction and resulting in losing half of her 401(K) investments. To recover from that lost, Peggy Parks made an unconventional investment after learning how robust the Alpaca’s business can be. According to Peggy, “with Alpacas it is something tangible that you have on hand and always going to be there” (University of Phoenix, 2014). Diversification Peggy lost almost half her retirement in the stock market and decided to turn to the Alpaca business for her new retirement plan (University of Phoenix, 2014). She had made a good return the first year of business. There is a risk involved with investing in only one asset. Stable Money Makers demonstrated this when it mentioned how investors lost significant money from investing in Emus in the 1990’s. Diversification is reducing risk by investing in two or more assets whose values do not always move in the same direction at the same time (Parrino, Kidwell, & Bates, 2012, p. 214). Investing in another asset in addition to the Alpacas would improve Peggy's business. If Peggy wants another tangible asset investing in cattle or production of hay are good options. They are not directly related to the Alpacas so if prices fall on...
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...FIN 571 WEEK 6 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-571-week-6 Visit Our website: http://hwsoloutions.com/ Product Description FIN 571 Week 6, FIN 571 Week 6 complete Working Capital Simulation Introduction Strategic planning in the capital budget of a business is critical for new and mature businesses. Finance professionals, internal, and external users have to be able to dissect the information provided from a company’s financial statements in order to make investment decisions. The Harvard Simulation on working capital allowed the team to manipulate different financial profiles in order to forecast operational efficiency. Working capital is calculated by subtracting current assets from current liabilities. The team’s recommendations are based in three phases for the development of the company for the next 10 years. Phase 1 Decision During phase one the company decided to use a controlled approach in an attempt to gain working capital. The focus is to increase growth rate and current cash flow. First, the CEO’s decided to Leverage Supplier Discount. The company leveraged the supplier discount in order to allow the company to grow and build relationships within the market matrix; however, this caused a negative impact on accounts receivable and inventory balances causing a drain on the cash flow. Secondly, we declined Acquire a New Customer. Theoretically, acquiring Atlantic Wellness as a new customer would have increased sales...
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...PROYECTO DE TESIS I. DATOS PRELIMINARES. 2.1. Facultad Facultad de Negocios 2.2. Carrera profesional Administración y Negocios Internacionales 2.3. Título de la investigación “Oportunidad De Negocio En El Mercado De Corea Del Sur Para La Exportación Peruana De Hilo Fino De Alpaca A Partir Del Año 2015” 2.4. Autor(es) * Vargas Plasencia, Kenia Delí kenia.vp5@hotmail.com 2.5. Asesor * Calua Arroyo, Jury Anita Grado Académico del asesor. Correo electrónico del asesor. 2.6. Tipo de investigación 2.7.1. Según el propósito. Básica 2.7.2. Según el diseño de investigación. No experimental 2.7. Localización 2.8.3. Distrito, Provincia, Región. Universidad Privada del Norte Trujillo, Trujillo, La Libertad 2.8. Alcance La presente es una investigación Descriptiva, enmarcada en el ámbito de las ciencias economicas que considera principalmente la gestión de incursionar en nuevos mercados a través de su investigación de mercados. 2.9. Recursos 2.10.4. Humanos. Autora de la Investigación Especialistas en la Materia 2.10.5. Materiales. Computadora Laptop Lapiceros Hojas Escritorio 2.10. Presupuesto El proyecto tendrá un costo aproximado de 300 soles 2.11. Financiamiento Financiamiento por parte del autor. 2.12. Cronograma II. PLAN DE INVESTIGACION 1. Problema de la Investigación. 1.1...
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...down fillers. GMS products are sold through upscale retail outlets generally specializing in performance outdoor apparel used in alpine skiing. Annual sales are at 100,000 units per year with gross revenue of $20,000,000. Total current employees are 100. GMS has developed plans for a new line of outer apparel utilizing a liner made from an Alpaca premium long fiber weave with a Gortex laminate. Alpaca was chosen for its superiority to wool and other natural fibers. It has higher durability, softness, water repellency, and broader thermal properties than wool. It is flexible at very cold temperatures, has inherent stretch for mobility, retains thermal properties when wet, and is hypoallergenic. It is therefore better suited to this intended purpose than most manufactured fibers. As a renewable resource and biodegradable product, alpaca fiber is consistent with GMS environmental policies and offers the opportunity to market it as a “Green”, environmentally friendly product. Purpose: This study will explore the feasibility of creating a subsidiary company in Chile. The company, GMS Chile, would produce the appropriate alpaca fiber with a target of being the sole supplier for this product line. This will allow superior in-house quality control and selective breeding practices for required fiber...
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...Should the use of solar power be encouraged? The introduction of alternative energy like solar power aims to decrease the impact humans have on biodiversity due to the issue of enhanced greenhouse effect. Solar power is electricity generated from the levels of natural energy contained within the sun’s rays . Supporters of solar power maintain that this energy source is able to lower greenhouse gases as it is a natural resource that does not require further processing. It can be supplemented entirely or partially which may possibly rule out the use of fossil fuels. Solar power is an infinite energy source which reduces the world’s reliance on fossil fuels. Opponent’s claims that solar power is not constant, it contributes to Global Warming as the production of solar panels used in generating solar power create pollution and is costly. There is a great need for alternative renewable energy such as solar power as the world’s reliance on fossil fuels increases the levels of greenhouse gas emissions. 86% of primary energy used is generated from burning fossil fuels . Due to the large consumption of fossil fuels utilised in providing electricity, fuelling transport, and heating and cooling,large quantities of carbon or hydrocarbons, and carbon dioxide is released when fossil fuels such as petroleum and coal are burned. Approximately 21 billion tons of carbon dioxide is released into the atmosphere yearly which is too much for the atmosphere of Earth to neutralise or utilise naturally...
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...Trabajo 6 Plan Comercial 10 Plan Financiero 11 Identificación de Riesgos 16 Conclusiones y Recomendaciones 17 Resumen Ejecutivo La Asociación de Tejedoras a Máquina “23 de marzo” es la más consolidada y organizada del municipio de Llallagua, actualmente tiene 45 socias de las cuales 23 participan activamente, la asociación cuenta con aproximadamente 40 máquinas tejedoras con una capacidad de dos mil chompas mensuales, su principal producto son las chompas para el uniforme escolar. La utilidad por producto de chompas de uniforme escolar, es aproximadamente de Bs. 16,76 si se toma en cuenta que la persona tiene una tienda taller en alquiler paga luz y deprecia su máquina; frente a Bs. 107,00 de utilidad si produjera prendas de alpaca. En el taller de construcción del Plan de Negocios las socias definieron la siguiente visión: “Ser la Asociación de tejedoras más importante de la región que produzca prendas de vestir de alta calidad que se puedan vender en mercados del interior y exterior de país”. Actualmente las socias trabajan de manera individual, pero están conscientes de los beneficios que les traerá trabajar de manera colectiva como ser: * Minimizar costos de abastecimiento de materia prima. * Mejorar el sistema de mantenimiento de su maquinaria. * Incrementar sus ventas y niveles de producción. * Incrementar sus utilidades por producto. Para conseguir estos objetivos las socias están de acuerdo en designar responsabilidades y capacitarse...
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...todas estas entidades están agrupadas y regidas bajo la figura jurídica (creada en el 2006) de Gruppo Salinas. Emprendimientos implementados Actualmente se producen y comercializan cerca de 150 productos diferentes (para el consumo local e internacional). Los emprendimientos de las microempresas familiares conformadas y que brindan un gran servicio a sus comunidades se cuenta con: Producoop que produce derivados de leche, quesos, mantequilla, yogurt; Confites Salinerito es una microempresa administrada por la Fundación Familia Salesiana y que produce turrones, chocolates de calidad de exportación. Texsal crea tejidos con el uso de materias primas propias de la zona como es la lana de oveja, alpaca y llama; Hilandería Salinas cuya principal actividad es procesar la lana de oveja y alpaca para transformarla en hilo; Embutidora Salinerito es una microempresa autosustentable que procesa carne de...
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...1. TCO F. Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC) demanding CC stop using M2W’s tagline, which is registered with the Trademark Office. Clean Clothes responds, stating that (a) CC’s tagline is different enough as not to violate the trademark, (b) CC didn’t know about M2W’s tagline so they couldn’t have copied it, and (c) Men2Wimmin has no damages and therefore can’t sue Clean Clothes. Analyze the case for Men2Wimmin, including the elements of any case they have, and explaining any defenses that Clean Clothes might raise against them. What damages can they request, and do you think they will get them? Why or why not? 14a8b106 It is discovered that 2 weeks before the Ellen show, she had sold $2 million in JOSB stock (at a gain of about $2,200). The morning after her show, Ellen sold JOSB short (which means she was betting the stock price would go down), and she made another $210,000 in the next week on that trade. The swing in the price was not directly tied to her comments but was suspected to be a result of a recall JOSB made on their entire line of men's black and brown dress slacks when it was discovered that they had been sewn together with white thread. Ellen's previous trading activity shows that she made it a normal practice to “vigorously trade” the stock of any company with which she did business. A review of her trading activity for the past year showed that she had bought and sold JOSB stock 25 different times, including short sales...
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...When the two old friends work side-by-side, sparks fly and passion ignites as a kamikaze bat, a collapsing floor, a stray alpaca, and an elderly woman with the worst plumbing in California conspire to bring them back together. (34,000 words or 130...
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