FIN 486 Week 5

FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan

Create the financial portion of the strategic plan. The plan must include 3 years of income statements, balance sheets, and cash flow statements.

Write a memo of no more than 1,050 words that explains the plans major assumptions and identifies areas of risk. The memo must include the following:

A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow

An explanation of corporate risk mitigation techniques used in capital budgeting

An analysis of the effect of a companys capital structure on strategic financial planning and how it affects risk

Refer to the Mergent Online database available in the University Library for financial plan examples.

Format your memo consistent with APA guidelines.

Discussion Questions

In your own words, explain capital budgeting. Why is it important to a companys long-term success? Provide an example of poorly performed capital budgeting. How does this affect a companys long-term success?

Why is capital budgeting part of a companys long-term strategic planning process? What are the pros and cons of these methods:

o NPV

o Simple payback

o IRR