1.1 Research Question
“Should Mrs. X invest in a Rubber plantation in the North East of Thailand?”
This question was chosen as a friend of my family has recently been offered an investment opportunity in the North East of Thailand. Mrs. X has no knowledge of how to assess the project. The opportunity for investment is further complicated by a very long period before any returns are seen.
1.2 Theoretical Framework
Financial assessment tools including payback period, accounting rate of return and net present value. In addition cash flow will be examined over the life of the project which has been limited to a fixed period of 15 years.
1.3 Methodology
Firstly secondary research will be conducted into the market for rubber and substitute products. The primary research conducted will include an interview with the investor to discuss her financial situation and her feelings about investing in the rubber business and her knowledge of the market. Any financial data relating to the potential investment will be examined and the basis of any forecasts made will also be investigated.
1.4 Anticipated Difficulties
A number of difficulties may occur during this project. First I am uncertain about how much data the potential investor has and secondly it is difficult to make accurate predictions about projects with very long lives. It is also difficult to assess given the changing business environment however in order to combat this problem a conservative approach is used.
September October November December January
Decide on a validated title 28
Complete Research Proposal 6
Complete Introduction 16
Complete Methodology 20
Carry out primary and secondary research 23-25
Complete Analysis and Discussion 26
Complete Conclusion and Recommendations 27-28
Complete Bibliography and Appendices 29
Hand in first draft of coursework to supervisor 31
Complete final draft of coursework 12
Action
Bibliography: - Fadzil Ghazali (2000) Keeping the season going in rubber plantations http://www.allbusiness.com/agriculture-forestry/forestry-logging-forest/8041206-1.html - Replantation subsidy for rubber may go up (2007-12-18) http://www.commodityonline.com/news/Replantation-subsidy-for-rubber-may-go-up-4295-3-1.html