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Describe the role of a financial manager, and the process that a financial manager would use to make a financial decision for the firm. Your
Describe the role of a financial manager, and the process that a financial manager would use to make a financial decision for the firm. Your response must reference the specific financial resources that a financial manager must examine in their analysis, and must describe the process that a financial manager must apply in their decisionmaking process. What are specific strategies that a financial manager can use to ensure that their recommendations are not simply based on their opinions, but are grounded in analysis of the data?
By this point of the semester, you have completed several case studies that ask you to compare the merits and risks of different projects. We typically call this process capital budgeting. When evaluating two projects, describe the specific capital budgeting methods that should be applied to the analysis, including the advantages and drawbacks of each method.
When making a financial recommendation, scenario analysis and sensitivity analysis are two methods that are often used. Describe each of these methods, and how they can be helpful to a financial manager in making a financial decision.
Describe the function of a discount rate, including explaining how the WACC and CAPM are applied. In an environment where interest rates are unstable, what are some of the steps that we must take to ensure that our model accurately represents the value of the project that we are forecasting? What are some of the specific risks that we must consider when implementing this type of analysis?
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