Whose done business management? Help!

Hi,

Im doing a business management course..
My assignment is due tomorrow.. i had to write a preliminary evaluation of a proposed small business.. iv done that but they want me to do a projected return on investment and i wouldnt have a clue how to do this or where to begin? Anyone know how?

Thanks
Kandice

Edited by LilAngel4Me

on god i'm a geek

ok work out how much money you think the business will make each year, then work out how much mone they are going to have to invest at the beginning to set the business up.  divide the money you think it will make by the money they need to invest.

Eg they will make $40K sales in the first year, there will be $35k expenses in the first year so te business will make $5K

to set up the busiiness they need to buy xyz so will put in $100K (this is called equity)

5/100 = 5% return on investment for the first year.

hope that helps