President average electronics company estimates the financial projections and the proposed financing program presented chief financial officer. Forecasts are prepared in constant dollars, based on which the proposed financing plan is reasonable. However, when inflation is included in the projections, the funding must be much higher than the available sources of funds, and the settings on the operating side is necessary. Dangerous to rely on a single set of projections based on the most likely outcome is also demonstrated. "Hide
by Thomas R. Piper Source: Harvard Business School 10 pages. Publication Date: November 1, 1974. Prod. #: 275058-PDF-ENG
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