This analysis requires you to demonstrate your skills in budgeting and forecasting Five-year cash forecast and sensitivity analysis As noted previously, the Board of Directors for Recycl-able are comfortable with the current position of the company. However, they are mindful of the dynamic nature of the industry and the likely growth in both business and competition in the next few years. The Finance Director has asked you to produce a cashflow forecast for the next five years - based on the assumptions on the next page - and report the closing cash balance at the end of each of the five years. In addition, the Board would like to understand what happens to the cash balance if the following were to take place: a) Estimated growth for Household Recycling and Industrial Recycling was 5% year on year b) Estimated growth for Household Recycling and Industrial Recycling was 7% year on year rather than the projections included in the assumptions. c) One other scenario aspect that you might consider to be worthy of investigating. Finally, the Directors would like you to explain the advantages and limitations of the Incremental Budgeting approach used. In addition, they