Budgeting & Planning Flashcards
1
Q
Strategic planning
A
1) develop an understanding of existing businesses
2) identify new business opportunities
3) analyze alternatives
4) develop strategic plan
5) implement the plan
2
Q
External factors afffecting planning
A
1) political environment
2) regulations
3) complexity of projects
4) technology
5) complex schedules
6) owners
7) competition
3
Q
NPV
A
NPV > 0 means that the project covers the Companys weighted average cost of capital (thats a good thing) NPV <0 means bad project.