What Is Teladoc's Global Expansion Budget?

Teladoc Inc: Financial Analysis Teladoc’s global expansion budget was developed based on project milestones and associated tasks (See Table 1.). The capital investment needed to expand Teladoc Inc. products to the global telehealth market is estimated at $196,470 USD to include the project design phase, project development phase, product delivery phase, and project management phase of the expansion project. It is important to note that initial cost are estimates based on Teladoc utilizing personnel from the existing management team. The global expansion budget also includes a contingency plan in case Teladoc decides to modify the expansion team. The contingency plan includes contingency plan development, an additional marketing, legal, and finance team. The contingency plan is estimated to cost about $147,000 USD, which includes the labor
The time value of money is the concept that money available now, is worth more than the same amount in the future due to its earning potential. If Teladoc Inc. reinvested the initial investment of $343,470 at 7 percent over 10 years, the company would increase returns on investment by $332,187, which totals $675,657. The initial expansion cost is only USD $343,470, which means that the expansion is low risk to Teladoc Inc. Furthermore, Teladoc’s expansion into the global market is projected to produce sales that reach about $2,976,925 within the first year (See Appendix-A). The sales forecast indicate that Teladoc will increase gross profit by 66% from $1,320,570 in 2017 to $3,844,775 in 2018. Teladoc’s will also generate enough free cash flow to pay off the initial investment cost of $343,470 (See Appendix C: Teladoc Inc.: Performa Cash Flow Statement (12-Month). Teladoc will gain more from expanding telehealth products to Canada than reinvesting in the U.S. telehealth