A firm's managers realize they cannot monitor all aspects of their projects. However, in an attempt to maximize their firm's value, the managers do want to maintain a constant focus on the most critical aspect of each project. Given this specific desire, which type of analysis should they require for each project and why?   Multiple Choice   Sensitivity analysis; to identify the key variable(s) that affect(s) a project’s profitability   Cash breakeven; to ensure the firm recoups its initial investment   Scenario analysis; to guarantee each project will be profitable   Accounting breakeven; to ensure each project earns its required rate of return   Financial breakeven; to ensure each project has a positive NPV

Why do you think CFOs tend to look at strategic concerns before they look at the NPV of a project? If value creation means choosing projects with a positive NPV, what does strategic analysis achieve?

From Study Case Allied Food Products, please help with the following questions: k.) Based on common sense, how highly correlated do you think the project would be with the firm's other assets? (Give a correlation coefficient or range of coefficients, based on your judgment.) 1.) How would the correlation coefficient and the previously calculated s combine to affect the project's contribution to corporate, or within - firm, risk? Explain. m.) Based on your judgment, what do you think the project's correlation coefficient would be with respect to the general economy and thus with returns on “the market”? How would correlation with the economy affect the project's market risk? n.) Allied typically adds or subtracts 4% to its WACC to adjust for risk. After adjusting for risk, should the lemon juice project be accepted? Should any subjective risk factors be considered before the final decision is made? Explain.

What value would a discussion of the profitability index add to a conversation where you are trying to communicate the benefits of a positive net present value project to a firm’s general management team? (Explain clearly and in-depth.)

All of the following statements concerning a SWOT analysis are correct EXCEPT a. once the strengths, weaknesses, opportunities, and threats are identified, the planner systematically analyzes the SWOT to select the optimum financial strategy b. appropriate consumption and savings behaviors are examples of client strengths c. financial ratios that do not meet recommended levels are examples of client weaknesses d. technological breakthroughs, governmental controls, and emergence of new industries are examples of external environmental opportunities

To support growth strategies and combat competition with rivals, businesses seek external capital to further develop products and services in hopes to create new sales opportunities. Since capital investment often involves a huge money investment, longer time engagement and risks of uncertainties, any decision shall not be taken lightly and shall be carefully evaluated before putting money to start a long-term project. The goal is to ultimately make the right accept/reject decision. Respond to the following in a minimum of 175 words: Discuss criteria and techniques used to evaluate a capital project. Which criteria and techniques do you consider the most useful? As a financial manager, would you use the same criteria or evaluation techniques for any capital project? Why or why not?

Is it good for the firm if its manager only prefers projects that minimize overall risk

1.Which of the following statements is not correct about ESG? a.A mature ESG presence helps companies identify and tap into new markets, reach underserved customer bases, and innovate new products and services. b.A mature ESG presence leads to cost savings by reducing operating costs associated with material inputs (like water, energy from fossil fuels, soil). c.ESG information is used to understand enterprise risk management. d.ESG is about avoiding investment in companies that do not share one’s values.   2.What is a stakeholder? (Select all that apply) a.Someone who does construction staking for new building design plans b.An employee of a company c.A customer d.Someone who owns a “stake” in a company   3.What does a materiality assessment do? a.Assess what types of materials a company needs to create a product. b.Assess what ESG issues are most important to the long-term success of the business and most important to stakeholders. c.Assess a company’s marketing…

Which of the following is not a measure that management can use in evaluating and controlling investment center performance? a.residual income b.negotiated price c.income from operations d.rate of return on investment

A start-up entrepreneur should ask which reflective question when developing the venture? A. Are our innovation projects usually completed on time and within budget? B. Is there sufficient flexibility in our system for product development to allow small fast-track projects to happen? OC. Will everyone be involved with relevant knowledge from the beginning of the process? D. How will you manage the project from your idea to full-scale launch?