I’ve recieved feedback from an essay I submitted and need assistance with the following bullets below. (I’ve also added my instructors feedback so that it can be seen)
Justification
– Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposed expansion for the next seven to 10 years, using a spreadsheet or other relevant presentation vehicle to support your narrative. Be sure to justify your assumptions and
methodology based on sound microeconomic and financial principles. For example, what assumptions have you made about demand, price,
volume, capital purchase costs, incremental hiring, and so on?
Feedback from Instructor:
You provided a good discussion of revenues, but did not address cash outflows or inflows, the incremental cash flows from the project and other information as required by this section, particularly in the detail needed.
Justification: Financial Impact: Consolidated
– Develop a consolidated financial projection of revenue, pretax income, and cash flow for the overall business, over that same number of
years, both with and without the proposed investment. Use a spreadsheet or other relevant presentation vehicle to support your narrative,
being sure to describe any relevant assumptions.
Feedback from Instructor:
You provided a good discussion of revenues, but did not address cash outflows or inflows, the incremental cash flows from the project and other information as required by this section, particularly in the detail needed.
Financing
– Assess the viability of a business combination as a mechanism for expanding into the new market. Is this a reasonable option for the company? Why or why not? Support your answer with appropriate research and evidence.
Feedback from Instructor:
Your analysis spoke in generalities without any specific figures or estimates really discussed. You provide a good general discussion but needed to devote more of your analysis to your firm specifically. You really needed greater depth of explanation and clearly outlining in detail what would occur under the differing scenarios.
Track Record:
– Convincingly argue that your organization is on solid financial footing, and thus at a low risk for default, supporting your argument with appropriate
financial statements, ratios, and other indicators of financial performance and health.
Feedback from Instructor:
You needed to provide more quantitative analysis to support your discussion. Your analysis showed very limited discussion of ratios or other financial measures of performance.
– Convincingly argue for your organizations trustworthiness, providing credible evidence of legal and ethical financial behavior. For example, this
might include recent audit results; credit history; absence of significant lawsuits, recalls, or regulatory judgments; or other evidence designed to show that the company holds itself to the highest legal and ethical standards.
Feedback from Instructor:
You did not provide any discussion of legal and ethical issues for Nordstrom. You focused on creditworthiness which was not a required part of this section.
