Financial Modeling and Forecasting for Investment Decision Making at Berkshire Hathaway

Requirements:

1. Develop a financial model for Berkshire Hathaway to forecast cash flows and evaluate investment opportunities in the insurance and manufacturing sectors.

Investment Category	Cash Flow Forecasts ($)	Risk Assessment
Insurance Sector	Premiums, claims, and reserves	Regulatory and catastrophic risk exposure
Manufacturing Sector	Revenue, expenses, and capital investments	Market demand and operational risks

2. Calculate key financial metrics such as net present value (NPV), internal rate of return (IRR), and payback period for each investment opportunity.
3. Perform sensitivity analysis to assess the impact of economic variables (e.g., interest rates, inflation) on investment returns.
4. Recommend investment decisions based on financial modeling outcomes and risk assessments.