The intere The interest of the academic and professional communitiesst of the academic and professional communities

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If you can take it out of your own pocket, out of your own savings, there is no big mystery, although it is still advisable and responsible to make calculations and studies on the impacts of this. Yes! Own capital also has a cost! And if the cost of own capital exceeds the expected (probable) return, it is not worth investing. And this equation is technical; guesswork is usually tragic, unless you are very lucky. But luck is a subject for casinos, not for academic studies (Law, Accounting, Business Administration, Economics). Those who do not make entrepreneurship an act of gambling resort to capital engineering. Want to see?

You will not believe it, but there are cases in which it is not worth using own capital (or transforming assets into capital, by alienating them). There is no formula: it is necessary to evaluate all the implications and bulk sms india repercussions, calculating and comparing the alternatives. That is why we talk about engineering. But let's not go any further: this part of capital engineering is not legal. With absolute nerve, we state a truism: the legal part is up to lawyers. And various legal means impact the calculation of the cost of capital, which is why accountants, economists, financial managers, among others, let us sit at the table. In fact, they need us at the table. Want to see?

After the calculations, the project requires an investment of R$5,000,000.00 in six months, so that the establishment can be installed and business activity can begin. The experts (not us, yet; others; for example, if it is a mining company, we will have to include the Mining Engineering staff) who calculated the facilities also estimated an additional need of R$1,000,000.00 for working capital, estimating that the cash flow will start to experience inflows (sales!) in an estimated time of... See?