Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Feasibility Study

Competencies
  • Interpret how the components of a balance sheet and income statement communicate the financial position of an organization.
  • Interpret the components of a cash-flow statement to describe the liquidity of an organization.
  • Evaluate financial ratios to differentiate profitability and liquidity across organizations.
  • Analyze leverage and activity ratios to review operating performance across organizations.
  • Determine current values of cash streams utilizing discounted cash flow techniques.
  • Critique organizational investments using forecasting scenarios.
Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane

.

Scenario

You recently went to a dealership for an oil change on your vehicle, as no independent oil change companies or auto repair shops are within 50 miles of your home. You paid $250 for this oil change on your Chevy Camaro.

Given your entrepreneurial spirit and frustration with the cost of the oil change, you have an idea for a mobile oil change company. You have completed a marketing survey to determine potential interest in such a company. The marketing survey results suggested that 50% of vehicle owners would entertain using a mobile oil change company for oil changes if such a company existed.

You live in a town with 30,000 registered vehicles, of which their owners take 15,000 to the dealerships for oil changes. Most owners take their vehicles to the dealership three times a year.

You will need the following to start this business and to gain funding from investors.:

  • 3 Mobile Oil Change Trucks (General Modifiable Flatbed Commercial Trucks)
  • Oil Changing Supplies (i.e., motor oil, clean cloths, drip pans, and oil filters)
  • Oil Changing Tools (i.e., Motor Oil Tank, Motor oil extractor, and a Fluid Flush Machine Mobile Oil Dispensing Kit)
  • Insurance (i.e., Auto for all three trucks and General Liability Insurance for the Business)
  • Budget for 3 Employees (Hourly Pay)

Pro forma financial statements, a financial plan, and a business plan are required for all potential investors and creditors. Prepare a 10-15 slide PowerPoint presentation and include financial proforma statements with the above information to present to potential investors and creditors.

Instructions

Using PowerPoint (or similar) and this Module 7 Feasibility Calculations Template – 2023, you have been asked to develop a feasibility study presentation to determine the feasibility of this idea for a new company.

Module 7 Feasibility Calculations Template  – 2023.xlsx

 Your feasibility study presentation should include the following:

  • Develop a conservative forecasted sales budget based on the survey results using the Excel template. Make sure your price is less than what the dealership charges.
  • Within the Excel spreadsheet, Identify fixed and variable costs for each oil change. Using these values, develop an operating budget to determine the contribution margin for an individual oil change and the total amount for the forecasted sales budget.
  • Develop a proforma income statement, balance sheet, and statement of cash flows for the first year of business. The business Tax Rate is 20%.
  • Based on these proforma financial statements, calculate one financial ratio in each category of profitability, liquidity, and solvency ratios.
  • Based on a 40-hour work week, estimate how many oil changes one person can realistically perform. Given the projected sales forecast, develop a capital investment proposition for additional trucks with anticipated useful lives of 5 years. Use the discounted cash flow method at an interest rate of 6%. Develop a 10-15 slide PowerPoint presentation summarizing these figures above and provide a recommendation to invest in this mobile oil-changing business based on the feasibility report provided.

NOTE – Be sure the documents display proper grammar, spelling, punctuation, and sentence structure.

Assessment Requirements/Submission Requirement:
  • Submit a 10-15 slide PowerPoint presentation, including attribution for outside sources.
  • Submit the Excel Feasibility Spreadsheet to show all calculations used for the scenario.

A – 4 – Mastery

Accurate and appropriately conservative forecasted sales budget based on the survey results.

A – 4 – Mastery

Correctly identifies fixed and variable costs for each oil change and develops a realistic operating budget.

A – 4 – Mastery

Accurate and complete proforma income statement, balance sheet, and statement of cash flows for the first year of business.

A – 4 – Mastery

Accurately calculates all profitability, liquidity, and solvency ratios.

A – 4 – Mastery

Accurately develops a capital investment proposition and PowerPoint presentation for potential investors.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Stock valuation

   You have been asked to perform a stock valuation prior to the annual shareholders’ meeting next week. The two models you have selected to value are the dividend discount model and the discounted cash flow model. Explain why the estimates from the two valuation methods differ. Address the assumptions

Current economic conditions

   Using your Wall Street Journal subscription, select an article about the current economic conditions and trends regarding a changing interest rate environment. How would bond values change over time? As a bond investor, what measures would you take to manage rate risk based on current economic conditions and the

Reading 7

Instructions and readings attached  For section #2 Comparative Insight (7 points) I also attached week 6 reading (Selection_ Initial Assessment Methods.pdf) 

D8

Risk Management Plan Peer Review Instructions Review at least one other student’s risk management plan and complete the following within this discussion. · List the company and project name for the plan you reviewed. · Choose one risk identified and follow it through the qualitative analysis, quantitative analysis, and risk

QSO 321

  QSO 321 Module Eight Assignment Guidelines and Rubric Overview An important part of any career is professional development. Professional development can consist of attending conferences, taking additional courses, reading professional texts, or earning industry credentials. Many workplaces encourage professional development and also provide employees with funds to be used

supply chain

i need help w/supply assignment · Highlight potential challenges or trade-offs involved in implementing your recommendations. Working as a team, produce a 5-page professional guide that not only summarizes your research but also critically evaluates and applies it to real-world procurement practice. Our Topic:  · How procurement professionals should approach

Dummy post- Tax Admin

1. How is the current tax administration in the Turks and Caicos Islands structured, and what challenges or limitations have you observed in its ability to ensure compliance and effective revenue collection? Function-based Organizational Model -functional areas – 1. Taxpayer Services and Business Licenses- 2. Audit and Investigations 3. Compliance

Unit IV Ass

see attached Assignment Objective: For this assignment, you will research and compare international and U.S. accounting standards. This will enable you to see how the different reporting methods affect business and how product costs are affected by international business. In the assignment you will do the following: 1. Compare and

ACCt105

see attached Instructions Complete the Budget in a Service Company (Cash Budget) assignment.   Please use the template provided below. The document must have the complete budget and show the entire process along with an explanation. Add a brief explanation of the budget just like what you should do if you

Balik and Kiefer Inc

   Assume that you recently graduated and have just reported on working as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a

Questions

Just need a brief answers to prepare for my proposal defense  Last Updated: Jul 1, 2025 11:01 AM URL:  Print Page Staff Login Report a problem Dissertation Center / Dissertation Defense / Example Defense Questions Dissertation Defense Dissertation Defense: Home Preparing for the Defense Example Defense Questions Consider These

Motivation a driving force for goals achievement

Please see attachment for assignment reference and instruction. BMAL 703 Motivation Theory Assignment Instructions Overview Since motivation is a major determinate of a person’s persistence toward achieving a goal, it is important to examine how managers can use motivation to attain organizational goals. There are various theories to help managers

Conscious Capitalism and Christian Worldview

     Describe how the concept of Conscious Capitalism aligns with Christian worldview principles; and demonstrates the importance of corporate social responsibility to the parent company’s board of directors. Instructor Tips: Include 1 short paragraph (3 to 5 sentences / bullets) for each of the 2 parts of the question:  

lFG-1

please review BUSI 606 Discussion Assignment Instructions The Discussions allow you the opportunity to apply what you have learned from the Module: Week’s readings. There are 2 parts to each Discussion: thread and replies. Both parts must be posted and written in a substantive manner, without spelling and grammatical errors

Business Finance – Operations Management week 8 assignment

4-5 page explore the leader within. You will be applying your own leadership skills to a real world scenario within the U.S. Marine Corps. Go to and click on the Command and Leadership module. What would you do as a leader based on one of the case studies from the

Week 8 discussion

 What is the difference between the forces for change and planned change?How can organizations overcome resistance to change? How can managers create a culture for change? 

Business Finance – Accounting homework

see attached Use this reference for first 2 questions. Williams, J., Bettner, M., & Smith, K. (2023). Financial & Managerial Accounting (eBook with Connect access). New York, NY: McGraw-Hill Education. Homework 1, 1 page with 2 references: Review the provisions of the Sarbanes-Oxley Act of 2002 to address the accounting

BUSINESS (NO PLAGARISM A+ WORK, ON TIME)

Discussion & Respond Week 8 (No more than 200-250 words) Research  Research marketing plans(attached) and controls for success. Review information on your final paper topic and the industry it is in.   Discuss · What were the challenges and triumphs you encountered while writing your marketing plan? · What would