Finance Questions
Can someone help me with these questions please?
1)
Financial forecasting is very important as this sets the budget on daily operations such purchasing a new computer or software. This also allows the company to see whether they need to employ or let go of employees and how many.
What challenges might a firm face when trying to forecast what the future holds?
2)
You also might face problems with customers making more returns than ever before or having products orders going out late to the customers.
What options do firms have in this situation?
3)
The concept of TVM or the Time Value of Money, basically states that any amount of money is worth more now then the same amount of money may be later.
Does this hold true in a deflationary environment?
4)
How might the size of the NPV of a project or the magnitude of a project’s IRR be interpreted as an offset to a project’s risk?
5)
Is it ever possible that a financial plan would call for a decline in sales and thus contraction of a firm’s current operations? How would a firm plan for this case?
