The Feed Resource Recovery Case Study

methods, along with recovering the unused food for use in food banks or bioenergy. By 2015

First of Shane needs to get his financial figures straight, even his business partner admitted that it was a bit off. If they want any investors to be interested he will need to have realistic figures or he will not be taken seriously.

EEC calculated the amount of time involved the anticipation of its cost ($3 million). The timeline in recovering their cost of investment ($2 million) initially for the foundation of this investment any profit made in the future of this investment will be justified as a profit for the company. If EEC can anticipate a fast return on its investment it is a profitable wise decision in making the investment financial, it is considered to be an easier way of formulating investments financially. On the basis of one year all cash flows is added together equal to the sum of $2 million originally invested, then it is divided by the annual cash flow of $500,000. The calculation of the payback period would equal four years. After this time frame any financial proceeds will be considered profitable for the company. I conclude that the timeframe is adequate in comparison of the investment in this worthwhile investment financial venture for the company.

This conservation plan has been put together to identify any soil, salinity, fertility, water, grazing and manure management issues that Cattleland Feed yards might have and to make recommendations on how to improve them. The goal is to make the land owner more informed and knowledgeable of the beneficial management practice and get them to commit to improving them. This will need to be done in a realistic and financially manageable way.

* A new project idea which requires an investment of $2 mm and will generate total cash flows (including any salvage or terminal value) next year of either $4mm (recession) or $8mm (boom). The firm has not yet raised the cash to make this investment, but the market is aware of the investment opportunity.

We should accept the project because of the positive NPV and high IRR. We will gain $532 million in wealth which is a big money on the scale like this. The company has a bond rating of AA that makes the risk relatively low. So we should definitely say yes.

Industrial agriculture is currently the predominant food production system in the United States. It is distinguished by large-scale monoculture, abundant use of chemical fertilizers and pesticides, and meat production in CAFOs. CAFOs are ‘Concentrated Animal Feeding Operations’, otherwise known as factory farms, which aim to cram as many animals in one space to boost efficiency and profit at the expense of animal suffering and environmental hazards.

According to his financial model, the investment generates positive cash flow, excluding the initial investment, over the life of investment. This indicates further capital will not need to be raised for

Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.

Thus, by year three the company will be making a profit off the investment as year three is 86.73 million profit by 55.35 cost giving the company a 31.38 million dollar surplus. Generally, a period of payback of three year or less is acceptable (Reference Entry) causing this project to be viable based off the payback analysis. Although, these calculations are flawed. The reason for this is because the time value of money is not taken into effect when calculating payback periods which is where IRR can further assist in a more realistic financial picture (Reference Entry).

Depending on how much additional investment needed and what will be the payback period. Another cash flow statement will be needed for further reviewing to decide whether additional funding will be a good

The question that transcends the project is whether equity investors be sufficiently rewarded to justify there financing interests. The answer to this question is dependent

After year 5, they cash flow will pick up where it left off and increase even higher until they sell the company. The IRR will be around 429%. And the value created from the small investment will be just under $45 million in only a 7 year period.

........................................................................7 7.0 Financial Plan .........................................................................................................................................7 7.1 Start-up Funding ...........................................................................................................................7 7.2 Important Assumptions ..................................................................................................................8 7.3 Break-even Analysis ......................................................................................................................8 7.4 Projected Profit and Loss ..............................................................................................................9 7.5 Projected Cash Flow....................................................................................................................12 7.6 Projected Balance Sheet .............................................................................................................14 7.7 Business Ratios ...........................................................................................................................15

According to the United Nations Food and Agriculture Organization (FAO), food wastage, “food produced and not eaten,” emits enough greenhouse gasses (GHG) to be ranked third amongst global emitters (FAO 2013, 6). In New York City (NYC) it is estimated that businesses “produce more than 650,000 tons of food waste annually” (Turso 2017). This specific food waste is classified as food scrap, cooked food which is still edible, but no longer useful to the business due to a myriad of reasons. Whatever the reason may be for the company, this tonnage of food has the potential and possibility of being recovered for redistribution to food banks, soup kitchens, and other food rescue organizations. For example, two of the largest organizations in NYC, City Harvest and Food Bank NYC, will collect around 59 million and 24 million pounds in 2017 respectively, of unprocessed/non-perishable food. This is equivalent to about 42 thousand tons or 6.5 percent of annual food waste from scraps. Despite having warehouses, fleets of vehicles, and numerous volunteers, two of the largest organizations barely make an impact on the total amount of food rescued versus food wasted.