Suppose you are a CEO of the small company, you will apply principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has the unique financial profile and you should analyze effects on working capital. Examples of opportunities comprise taking on new customers, reducing inventory and capitalizing on supplier discounts.
You should know how income statement, statement of cash flows and balance sheet are organized and be able to analyze forecasted financial information to believe possible effects of each opportunity on firm's financial position. Company operates on thin margins with inhibited cash position and limited available credit. You should optimize use of internal and external credit as you balance wish for growth with necessitate for maintaining liquidity.
Sign-in to simulation and review each of following:
Welcome Statement
How to Play
Terminology Primer
Additional Details (this comprises information to aid you recognize how to play simulation)
Write down a paper of no more than 1,400 words which analyzes your decisions throughout each phase (1-3) and how they influenced each of final outcomes (metrics) of SNC given below:
Sales
EBIT
Net Income
Free Cash Flow
Total Firm Value
Conclude following in your paper:
i) Summary of the decisions and why you made them
ii) How they affected SNC's working capital
iii) What common effects are related with limited access to financing
iv) Comprise scholarly references
v) Format the paper consistent with APA guidelines.
Requirements
Other Requirements: No more than 1400 words and should be referenced.