Construct a scenario for a well-known company, or one with which you are relatively familiar using the following steps:

(a) Draw up a list of events and changes that you think could materially affect the company’s cash requirements in the next five years. You can select your list from Table 18.5 and add any other items that could be important.

(b) Relist the items in a table similar to Table 18.6. List the most important items near the top of the table and the least important ones near the bottom. Then put each item in the time period (or periods) in which it is likely to have the greatest impact on cash flow.

(c) Select a scenario from the table. Say why your scenario provides appropriate assumptions for the company’s financial plan.