Investment Model

This module allows business owners to evaluate the feasibility of a new investment based on their current assumptions. The module comes with a basic Financial Model and is supplemented by 2 add-ons: Probability and Forecast Module, and the Simulation Module.

The Financial Model adopts the discounted cash flow (timeline) methodology and automatically calculates cash flows and profitability analytics based on user inputs. This model is simplified and generalized to fit most industries. Users have discretion over a large number of assumptions relating to funding, sales, expenses and cost of financing.

The Probability and Forecast Module provides a method to benchmark the user's assumption of their starting price against market competitors. This module also uses the historical price fluctuations (of the industry selected by the user) to randomly derive a set of forecasted growth rates.

The Simulation Module is built for the purpose of considering the profitability impact of multiple combinations of past price fluctuations. This module randomly derives hundreds and thousands of sets of forecasted growth rates, and run these values through the Financial Model to build a range of outcomes that corresponds to different market cycles from bad to good. The module presents the results in graphical form and also calculates the probabilities of positive outcomes.

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