Learning Team Reflection Week 6

FIN/571

Learning Team Reflection Week 6 Many Americans are looking for ways to safeguard their investments to generate profits for years to come. People have a better understanding of the importance in researching available options to invest money that will yield a good return. Peggy Parks is just one of many who has decided to take control of her 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