Question 1 The rapid economic environment changes that is happening in the world and specifically in the country (Malaysia) has made the financing decisions to be more challenging and it requires sophisticated approach in identifying the right decisions. The facility managers need to be responsible in participating in the creation of financial planning, capital budgeting, having the right balance of capital structure and its financial reporting. They also require to have stronger strategic dimension that is able to anticipate and be flexible enough to accommodate the possible changes in the environment they are operating in. You as a facility manager must be able to overcome some if not all the financial management challenges faced. Explain the challenges faced. Question 2 Capital budget is the process of creating a long run planning decisions for investments in projects (Horngren, 2015). The managers will make decision in selecting a few of the various projects that may run into several periods. In order to make the right or most viable decisions, the managers need to analyse each project by considering all the life-span cash flows from its initial investment through its termination or end of the project. Describe the stages involved in making the capital budget decision. Question 3 The success of the organisation would be determined by the capacity to generate positive cash flow. It is easier to forecast more accurately the cash flow of those projects or businesses that are already running or in existence as compared to those new and recently undertaken. Inaccurate cash flow forecast may lead to disastrous outcome such as acceptance of an unprofitable projects or rejecting profitable projects. Explain the major areas to consider when managers are undergoing strategy to estimate cash flow. Question 4 There are similarities between the business cycle in various industries. A facility or construction company will own and lease some assets to support their operations undergo changes that can be said to have parallel likeness to those of other