Finance - Deep Dive 5 - Investment
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Episode 5: Investment
In this episode, we explore the concept of investment and its importance to business success. We define what investment means, discuss its different forms—such as capital investment in equipment and human capital investment in staff training—and highlight the potential returns and risks businesses face when investing.
Using BrewBliss, our fictional coffee shop, as an example, we calculate the Return on Investment (ROI) for a new coffee machine and staff training programme, showing how businesses evaluate whether an investment is worthwhile. We also delve into the impact of investment on cash flow, break-even, and long-term profitability, while discussing real-world limitations, such as uncertain returns and high upfront costs.
By the end of this episode, you’ll understand how to apply investment analysis to real-world scenarios and weigh up risks against potential rewards.
Credits: Audio and AI assistance powered by Google Notebook LM.
53 episodes