investment project and justifications

II. Investment Project: Use this section to describe the investment for
which you are seeking funding, its costs, and time frame.
A.
Describe the investment project.
Be sure to provide sufficient detail to give
the loan committee a firm sense of the parameters of the activity, the need for
it, and what financial metrics are relevant for determining success. In other
words, what do you propose to do, where, what marketplace need will it fill,
and how will you measure success?
B. Specify the resources the project will require and where
these resources will come from. In addition to noting the amount of the loan
you are requesting, you should also consider human resources, facilities,
government approvals, intellectual property, access to natural resources, and
other resources that might be required to carry out the project.
C. Time frame. When will the project start, what is the
anticipated economic life of the proposed expansion, and how will you decide
if, when, or how to exit? Justify your choices with appropriate financial
metrics.III. Justification: In this
section, you should analyze the impact of the investment proposal on your
business.
A. Why is now a good time for this investment given the
global context? Justify your response, citing specific external factors such as
trade regulations, foreign currency considerations, or trends in foreign direct
investment that might affect business financial decisions.
B. Strategic fit. Use this section to discuss why the
investment proposal makes sense for your company strategically. Specifically:
1. How does the investment align with the companys
organizational and financial priorities? Support your argument with evidence
from company reports and financial statement analysis designed to persuade the
lender that the investment is a good strategic fit for your company.
2. How does the project fit within the global microeconomic
environment? Support your response with evidence. For example, would the expansion
tap unmet demand for the companys key products or services or fill a new
niche? How do you know?
3. How does the project build on the organizations core
competencies and comparative advantage? For example, does the company have a strategic
advantage from intellectual property, regional expertise, suppliers, or
organizational structure?

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