Milestone Three Guidelines

By now you have the knowledge of how to evaluate the equity of the company, analyze the market economy's behavior, and predict a company's future behavior through forecasting. Based on this knowledge, you will identify and describe business opportunities that the company should pursue and explain the benefits/costs of these decisions.

Prompt: In this section, discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a new product or facility or a cost-cutting investment, as an initial step in thinking about the future. Be sure to address the following:

A. Based on your knowledge of this organization, what is a likely investment it would consider and why? Be sure to describe the basic features of the investment as a foundation for considering its potential financial impact.

B. Evaluate the approximate costs and benefits of the investment you identified, explaining how these would affect your spreadsheet projections and business decisions. Estimates are sufficient, but should be grounded in common sense and insight into the organization.

C. How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cash spending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Does the benefit outweigh the cost?