Discussion Post
By the due date assigned, respond to the discussion questions below and submit your responses to the Discussion Area. By the end of the week, comment on your classmates' responses.
Respond to the questions using the lessons and vocabulary found in the reading.
Start reviewing and responding to the postings of your classmates as early in the week as possible.
Forecasting and Financing Projects
On the basis of the knowledge you gained from your readings, respond to the following questions:
a) It can be difficult to accurately forecast a project's cash flows because many risk factors may be present. As an analyst, what will you do to increase the accuracy of the project's cash flow forecasts? Provide details of the techniques that you would use and explain why.
b) Some firms use more debt in their capital structure than other firms. Some would argue that the use of debt in the capital structure enhances the owners' return on their investments. Others would say that the use of debt only increases the level of risk for the owners of the company. Which argument do you agree with and why? Explain your position. If debt is to be used when raising funds for a capital investment, how would you determine the proper level of debt? Explain your answer using examples
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.