Finance Funding for Building

Question: Describe about a Report for funding for building? Answer: This report is about the funding for building a college which when started, creates a tough scenario and many other challenges that should be faced during this period. Though it seems to be an easy process but practically it is a tough process which should be faced during this phase. This report practically deals with the education funding of a college and the other investments that are made or required during this process. It also includes projected future investments which is precious for the college or the institution. It also includes the overall expenses or the cost that should be made initially for the growth and the requirements of the college (Kumaul Junker, 2000). The college will provide an opportunity to the students to get education and learn finance. This will help them to acquire knowledge about the importance of accounting, benefits of accounting and different methods of accounting. Main Body: PART 1 The college is expected to generate substantial revenues at the end of each year. Therefore, initial investment will be required to finance the launch strategy and marketing campaign. The college will provide a complete platform for the finance students. The operating cost is related to the expenses that are related to the operations of the college. The decisions that are made for pursuing business in education include all the investments and expenses which are essentially required for the business in education. All the planning should be done properly in order to get proper idea for the expensed in this business. The estimated cost of this business is given in order to get an idea of the expenses that will be taking place to stand up this business. The costs also include the costs of the materials such as books and other study materials, tuition fees and the interest on the loans (George, 2004). This also includes other costs which are related to the business in education. The other costs include board, personal and other monthly expenses including the students health fees. In keeping the above points in mind, the decision for business in education plays a dynamic role in the world of business. The standard budget does not include the cost of the computer which helps in the reduction of the cost for the education. Thus the educ ation system has become a business and the expenses for pursing education have become difficult in the era of this generation (Hickman, Byrd and McPherson, 2013). Hence, it becomes impossible for about 65% of human beings to get the benefits of education or to receive education. The expenses that would be required to start the college include cost of books, cost of tuition, interest on loans and other associated expenses. Expenses Amount ($) Cost of books 35,000 Cost of tuition 75,000 Interest on loans 23,000 Other expenses 17,000 Total 150,000 PART 2 In order to start the business, an initial investment will be needed of an amount of $780,000. The investment will be required for advertisement, operating expenses, maintenance cost, salary for the teachers and staff and other cost (Elliott Elliott, 2008). The measurement of performance will help to evaluate the efficiency of the investment. Return on investment will help to measure the return amount on the cost of investment. The cumulative cash flow will help to obtain the result of payback period from the investment (Kara, 2010). Return on investment = (Gain from investment Cost of Investment)/Cost of Investments = (245,000 150,000) / 245,000 = 0.38 Time (Years) Initial cost ($) cash Flows ($) Cumulative cash flows ($) 0 780,000 1 245,000 245,000 2 180000 425000 3 215000 640000 4 230000 870000 5 252000 1122000 6 280000 1402000 Pay Back period 4 The return on investment from the college is 0.38 and payback period is 4. The return from the investment is quite good and payback period is within 4 fours which show a positive sign for the business (Stittle Wearing, 2008). Conclusion: Overall the business will be in profit with appropriate returns on the investment. The return on investment is 0.38 and the payback period is 4. The college will provide education to the students on finance. Return on investment helps to measure the profitability of the business that indicates whether the company is using its resources efficiently or not. The aim of the college is to provide unique and valuable knowledge to the students. Work Cited: Elliott, B., Elliott, J. (2008).Financial accounting and reporting. Harlow: Financial Times Prentice Hall. George, S. (2004). Demystifying the business plan.Psychiatric Bulletin,28(11), 418-420. https://dx.doi.org/10.1192/pb.28.11.418 Kumaul, H., Junker, A. (2000). Business Plan.WIST,29(9), 531-534. https://dx.doi.org/10.15358/0340-1650-2000-9-531 Stittle, J., Wearing, B. (2008).Financial accounting. Los Angeles: SAGE Publications. Warren, C., Reeve, J., Duchac, J. (2007).Accounting. Mason, OH: Thomson/South-Western. Hickman, K., Byrd, J. and McPherson, M. (2013).Essentials of finance. San Diego, CA: Bridgepoint Education. Kara, O. (2010). Comparing two approaches to the rate of return to investment in education.Education Economics, 18(2), pp.153-165.