Cash Flow
Cash flow is a necessary statement of any organization. It provides an idea of how an organization knows if they have enough money to pay the necessary fees and pay the bills. The cash flow statement will help to make it clear that NXTech has enough funds to keep the company running at a high level. The final cash flow for the fourth year is $175,505, which is reasonable for companies of this size. The current status of cash flow shows that the company is financially stable, but it is unable to hire more employees. The more revenue a company generates, the company can establish the more on cash flow and eventually hire more employees. In Table 14 below, you will see a summary of annual income and expenses. Below on table 14 you will …show more content…
If the investors know that they are investing in a fast-growing business, they might invest more in supporting our business. Balance Sheet The balance sheet shows annual sales CAGR of 8.4%. It must be pointed out that paid-in capital will remain unchanged for the next five years. Table: Balance Sheet

Income Statement
NXTech income statement will be displayed within five years, the net profit is expected to change. NXTech expects an annual growth rate of 8.4% over the next five years. Fixed costs are rent, insurance, utilities, car rental, depreciation and office supplies. The payroll tax is a variable cost and will increase linearly in the form of personnel compensation over the next five years.
Table: Income Statement

Break-Even Analysis
Break-even analysis includes sales revenue, fixed and variable costs, and profitability. Breakeven analysis allows NXTech and investors to determine a company able to maintain some of their own operating expenses, as well as the point at which it became profitable.
Table : Break-Even Analysis
Current Break-Even Chart
Figure: Current Break-Even …show more content…
It is the process in which we determine the value of a business or company. We want to use it to determine the fair value of our firm for a variety of reasons, including sale value which could be helpful for us to make a big picture of our business and form an objective estimate of the value of the business.
The Gordon growth model is an in-depth approach to evaluating the business after five years. It takes into account the cash flow for the fifth year and combines these funds with annual constant growth rates (+1) and project growth rates. The formula looks like this:
Cash Flow Terminal Year (1 + g) / (KS - g).
NXTech expects a net cash flow of $221,860 in Year 5. Combining this cash flow with a growth rate of 5% and a discount rate of 27% gives us all of the components needed to calculate the terminal value after Year 5.
Terminal Value = [$221,860* (1+.05)] / (.27 - .05)
Terminal Value = $1,058,877
This formula is derived from the value of $ 1,058,877. The model assumes that the growth rate of the same; therefore it is a method for predicting the next few years, according to the business to guide things should look