The financial aspect of the business is studied using various methodologies such as cash flow analysis and various investment valuation methods . In this project, we chose to use the NPV and IRR investment evaluation methods for several reasons. Investment valuation could also have been done by other methods like payback period, but the disadvantage of this method is that it does not take into account the cash flows that arrive after the payback period and may therefore lead to absurd decisions in certain cases. On the other hand, both NPV and IRR are more reliable because they take into account all cash flows until the end of the project. Additionally, in the payback period method, equal weight is given to all cash flows arriving before the payback period, despite the fact that cash flows further away are less valuable. This problem is also solved with the NPV and IRR methods because both take into account the time value of money. Again, the NPV and IRR methods also help ensure that the investment will increase the value of the company. Other methods cannot provide this information. The accounting rate of return method for investment valuation was also rejected for use in this project because it only considers profits which are not equal to cash flow and also does not consider time value money. Cash Flow Analysis – It is carried out for each model to analyze the financial health of the company over a 5-year model period. On the other hand, investment appraisal is necessary to assess the attractiveness of an investment (in this case, a business model) and is an integral part of capital budgeting. For this project, investment evaluation is carried out using the following methods. Net present value (NPV) is the difference between the present value of cash inflows and outflows and can be ...... middle of paper ...... license and public policy. Research Policy, 15 (6) 285-305. Tsang, EWK (2002) “Acquiring knowledge from foreign partners from international joint ventures in a transition economy: learning by doing and learning myopia”. Strategic Management Journal, 23 (9) 835-854.UK Increasingly a nation of entrepreneurs. (2003) Available at: http://www.prnewswire.co.uk/cgi/news/release?id=114873 [Accessed 22 July 2011]. Williamson, OE (1975) Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press. Williamsson, OE (1985) The economic institutions of capitalism: firms, markets, relational contracts. New York: New York University Press. Zhang, H., Shu, C., Jiang, X. and Malter, A. (2010) “Managing knowledge for innovation: the role of cooperation, competition and nationality of alliances”. Journal of International Marketing, 18 (4) 74-94.