Discussion: Cash Flows and Financial Forecast
Assume you are planning to start a new business that will sell innovative consumer products via an online store. You will be pitching your idea to potential investors with the goal of securing funding. Your investors are very savvy and want to review a well thought out financial forecast. Using the examples provided in Chapter 6, construct a hypothetical 5 year Cash Flow estimate including depreciation and tax-related amounts. Be sure to show your detailed calculations and document at least five key assumptions. Also, explain why cash flows occurring at different intervals should be adjusted for a common date in order to allow for a proper comparison.
Guided Response: Review several of your classmates' posts. Respond to at least two classmates by sharing other expenses that may not have been considered. Also, share with your classmates what you have learned from their posts about the costs of working.