CFP PROJECT FINAL 1 5

1.1. Review principles of estimating project cash flows. Suggested reading: Ch. 9 “Capital Budgeting and Cash Flow Analysis” in “Contemporary Financial Management”, 11th ed. by Moyer, McGuigan, and Kretlow.

Estimate the project’s operating cash flows for each year of the project’s economic life. (Hint: Use Table 2 as a guide)

3. Explain two methods that can be used in order to identify realistic estimations when developing a budget. [2.2]

The relatively well posed project with promises of great future pay offs must be examined closely nevertheless to determine its true profitability. As such, the Super Project’s NPV must be calculated, however before we proceed we must acknowledge the relevant cash flows. The project incurred an expense of testing the market. This expense, however, must not be included in our cash flow analysis because it can be considered a sunk cost. This expense is required for ‘taking a temperature’ of the market and will not be recovered. Other sources of cash flow include:

The projected costs in the last six months of 2004 (column 4) are calculated by subtracting the actual costs for the first five months of 2004 (column 2) from 2004’s projected total costs (column 3). This gives us the projected costs for the last seven months of 2004. However, we are only interested in the last six months of 2004, so

3. Explain two methods that can be used in order to identify realistic estimations when developing a budget. [2.2]

592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592

Please let me know if Account Receivable unit has to submit the quarterly SF-425 filing for the following grant. If the intent is going forward if A/R is responsible for the following function, I would like to schedule a meeting with the appropriate staff and understand the grant and the reporting requirements for competing this

Case II is a continuation of Case I. In this case you will convert the line-item budget developed in Case I into a functional budget. Then you will employ further information to create a flexible budget. Refer to the Case I Solution for data.

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

The executives of Davis, Michaels, and Company need help running their financial planning services. They must decide whether their assistant Janet can practice the fundamental concepts of finance efficiently enough or higher a temporary employee to help them conquer the overwhelming demand of their customers. Janet was given a variety of different DCF analysis questions to determine her skills. The main goal of every problem was to find the best investment strategy for different people that were trying to save up for an important investment in their future. In conclusion, by completing the tasks given and solved below, Janet has proved that she can handle the position

However, by the end of three-years, the company expects to be serving the entire Greater Phoenix Metro area. The company has rigorously examined its financial projections and concluded that they are both conservative in regards to revenues and generous in estimating expenditures. This was done deliberately to provide budget flexibility for unforeseeable events. The company's principals believe that cash flow projections are realistic.

Given our recommendation to accept the new investment opportunity, this project will impact the forecasted financial statements from 2010 onwards. Please refer to Exhibits 6 and 7 for the revised projections.

The goal of this financial plan is to use your present and expected future financial resources in the

This makes the company look good and they can afford to do this from good financial skills. Decisions like this make a good profit in the long run and all in all this is why it is so important to have a good management team.