Financial Management, June 2019 – Assessment
You have been asked by your 61 years old aunt Gabrielle to help her assess a new venture. It is
Friday night, and she needs the work finished by Sunday, in preparation for an early Monday
morning meeting, so you know that she will not be able to give you any more information than
she already has (and you will be unable to contact her over the weekend), and therefore you
should rely on your own assumptions and estimates for some of the analysis where appropriate.
Gabrielle lives in Paris, France and recently took early retirement (from a supermarket group she
joined 30 years ago), leaving the company with a lump sum (after tax) payment of €630,000.
Surprisingly, rather than being depressed by her new state of independence, she is excitedly
contemplating a new career as an e-retailer of a range of coated nuts (almonds, walnuts,
macadamia, pecans, etc). She is confident that she can set up a business to import the nuts from
the USA and sell them in France. Her husband, who she met at business school, is pleased with
her passion for this possible new venture, but concerned that it might turn into a financial
disaster. He has suggested that she develop a financial plan to evaluate the venture and its