In the reading, the biggest surprise for me was how big of a cut
administrative expensive take out of the companies’ sales revenue.
One part of the reading that was confusing to me was Internal
Rate of Return. The entrepreneur must work backward through the tables and
estimate the approximate rate. This whole process confused me and seemed a bit
unnecessary. The Net Present Value seemed more practical.
One question I would ask the author would be what benefits or
what situations does the IRR Method bring to entrepreneurs? A project under the
NPV method that got selected would also be selected under the IRR. The second
question I would ask the author would be what are the key differences between
Sales Forecasting and Pro Forma Statements?
It was difficult to find something the author was wrong about in
this chapter because most of the reading was factual. However, I do disagree
with the author when he said, “one of the primary issues that plagues start up
companies is poor cash flow.” This statement may be accurate but the author
gives no statistics or facts to back his statement.
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