Budgeting & Planning

Question 1

Strategic planning

Answer 1

1) develop an understanding of existing businesses
2) identify new business opportunities
3) analyze alternatives
4) develop strategic plan
5) implement the plan

Question 2

External factors afffecting planning

Answer 2

1) political environment
2) regulations
3) complexity of projects
4) technology
5) complex schedules
6) owners
7) competition

Question 3

NPV

Answer 3

NPV > 0 means that the project covers the Companys weighted average cost of capital (thats a good thing) NPV <0 means bad project.