Weather forecasters know they are making future predictions based only on past and present observations. What if a colleague told you that an investment in that new startup was a sure thing?
Finance professionals are making predictions, too, after all. Forecasts of future values are based on the analysis of past and present values. What tools can you use to be more certain that financial forecasts are on target?
Evaluate the role of cost analysis in forecasting present and future values for decision making. You include forecasting present and future values, discounted cash flows, and the role of cost analysis in the decision-making process.
Response to the following in a two page explanation:
- How do discounted cash flow (DCF) methods analyze investment decisions?
- What two types of factors affect the role of cost analysis in forecasting present and future value for decision making?
- How can organizations anticipate and plan for uncontrollable external events, such as weather? Explain.
Be sure to support your work with specific citations
0 comments