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Flashcards in Budgeting & Planning Deck (3)
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1

Strategic planning

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

2

External factors afffecting planning

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

3

NPV

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