Description

Week3 discussion 1 Cash Flows and Financial Forecast

Pathbuilder is being used in this course and this discussion is currently locked. Prior to beginning

work on this discussion you must complete the Computing Cash Flows, Incremental Cash Flows,

After-tax Cash flows, Recapture of Depreciation, Gains, and Losses, and Categories of Cash flows

modules in the  RealizeIt platform . Once the modules are completed and this information has been

transferred into the course gradebook this discussion will unlock and you will be able to submit your

initial post to the forum.

(Please note that some modules will have prerequisites that must be completed first. You are highly

encouraged to start your RealizeIt work early in order to ensure that you have plenty of time to

successfully complete all required modules prior to the due dates for your assigned work. If you do

not complete any work in the RealizeIt platform, the grade returned from RealizeIt will be a Zero.)

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.