Feasibility Study using the PMBOK® Methodology

In 1969 Martin Barnes opened the debate a lot about what is the best way to describe the fundamental limitations that underpin the success of the project. This paper develops a project integration model "Beyoutiful Esthetics" through the PMBOK® methodology. The objective in this document is to present the case of this model and demonstrate the way to evaluate the project in the delivery of successful results as part of the development of the PMBOK® model, in the area of beauty culture.


INTRODUCTION
Numerous investments, as well as professionalization in large companies, which show the relevance of Project Management, which involves feasibility, planning, costs, compatibility, integration and maintenance, increasing the search for skills in the management of new resources. In considering the importance of these relevant aspects and of this concurrent movement, the inspiration for the elaboration of this paper. With the aim of spreading the concept and the importance of the management of the integration of corporate projects and drawing a panorama of integration in the future of business, project management is increasingly used also in small projects, with teams, sometimes, multifunctional, which are mobilized for execution. Maintaining quality and control of various projects in progress is a complex task. The company that can reconcile all the necessary links for the realization of the works of form organized and planned and is concerned with project management: avoid surprises, anticipate unfavorable situations, work with budgets, streamline decisions, improve control, optimize the allocation of resources and document the process. The importance of project management is reinforced by DAVIS et al (1989), which indicates a greater opportunity to influence the cost of producing a business in feasibility study phase, briefing and project, that is, in the planning phase. During the development of a project, much is said about the success it will have in the near future, for this there are conventional methodologies that help project management, however they have been questioned (Weaver, 2012). PMBOK® (Project Management Body), is a methodology that develops in the procedure to develop successful projects When an innovative idea emerges comes with the risk of failure, entrepreneurs do not always decide to take risks to achieve their business idea. According to the National Entrepreneur Institute in Mexico, only 19% of start-ups in the country are women (López, 2016). The evaluation of the financial viability of a new "BeYOUtiful" business model is presented below. That provides aesthetic services and children's play area.

II.
OBJECTIVES Analyze the financial viability of an aesthetic investment in the city of Boca del Rio, Veracruz, Mexico. Specific objectives Verify if the business is viable from the economic point of view in accordance with the financial parameters of acceptance of projects. Evaluate the investment and the recovery period of it. Delimit the technical bases to execute the project. III. RESEARCH PROPOSAL In order to provide a structured version of the process to carry out the development of the project it is necessary to subdivide the work into smaller and easier to manage components. The project was divided into 5 stages, each one represented by a "hito". Subsequently, each of these parts were subdivided into tasks, and the working block structure was formed as shows below: 1.
Preparation of financial statements basic 3.
Calculation of Reasons Financial 4.
Internal Rate return 6.
Analysis e interpretation Financial 7. Proposal It is important to mention that the financial evaluation of the case study project has been carried out in Mexican pesos. With a weighted cost of capital of 9.63%. It is worth mentioning that the cost of capital of the banking institution is 12% and suppliers of 4%. The annual cost of operation budget considers the salary of two people who support the stylist, the salary of the stylist, the salary of the master stylist, the depression and the materials. In addition, administration costs include water and electricity services, without leaving out the lease and paperwork. Table 2 contains the operation cost of the project and the projection of sales in the next 3 years, it is estimated that the net income in the first year will be 517560 Mexican pesos, for the year two 370580 and in year three 374780. With the previous cash flow projection proceeds to calculate the net present value or net present value (VAN). The net present value (VAN) is a financial indicator used to determine the viability of a project. If after measuring the flows of future income and expenses and discounting the initial investment, some profit remains, the project is viable. (Ross, 2016)  VAN <0 the project is not profitable. When the investment is greater than the BNA (NPV negative or less than 0) it means that the TD is not satisfied. VAN = 0 the project is profitable, because TD gain is already incorporated. When the BNA is equal to the investment (VAN equal to 0), the TD has been met. VAN> 0 the project is profitable. When the BNA is greater than the investment (NPV greater than 0), this rate has been met and, in addition, an additional gain or benefit has been generated. According to cash flows and estimated interest, the Net Present Value of the Project is $ 1,377,908 Mexican pesos . VAN> 0 the project is profitable. When the BNA is greater than the investment (NPV greater than 0), this rate has been met, and an additional gain or benefit has been generated.
The period of recovery of the investment will be in year 1, in this year you have the benefit that will not be paid tax. The Internal Rate of Return (TIR) is the interest rate or return offered by an investment. That is, it is the percentage of profit or loss that an investment will have for the amounts that have not been withdrawn from the project (Gitman, 2003).
The selection criteria will be the following where "k" is the discount rate of flows chosen for the calculation of the VAN: If TIR> k, the investment project will be accepted. In this case, the internal rate of return that is obtained is higher than the minimum rate of return required for the investment.
If TIR = k, one would be in a situation similar to the one that occurred when the NPV was equal to zero. In this situation, the investment can be carried out if the competitive position of the company improves and there are no more favorable alternatives.