Identify the factors that should be included in the calculation of the initial investment.

M2 assignment 2 estimating cash flows

There are several things to take into consideration when you calculate the investment required for an initial project. First, the costs of purchasing any equipment or materials required to accomplish the task. Also, consider labor costs. This includes salaries and wages for employees as well as overhead expenses associated with staffing. You may also need permits or fees to invest in the project.

This process must be considered in addition to the financial investment. This includes both the actual time it takes for individuals involved in the project to complete tasks and also any potential delays due to unforeseen circumstances beyond one’s control (weather, supply chain issues etc.). Lastly ,it is important to consider intangible aspects such as risk management & value added features which could result from successful completion of the project . Organizations can evaluate whether this investment is profitable for future ventures by taking into account all of these factors before they commit resources.

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