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Acting as the executive team for a small company, your team will apply the
principles of capital budgeting to invest in growth and cash flow improvement
opportunities in three phases over 10 simulated years. Each opportunity has a
unique financial profile and you must analyze the effects on working capital.
Examples of opportunities include taking on new customers, capitalizing on
supplier discounts, and reducing inventory.
The team must understand how the income statement, balance sheet, and statement
of cash flows are interconnected and be able to analyze forecasted financial
information to consider possible effects of each opportunity on the firm's financial
position. The company operates on thin margins with a constrained cash position
and limited available credit. You must optimize use of internal and external credit
as you balance the desire for growth with the need for maintaining liquidity.
Sign-in to the Harvard Business Simulation and review each of the following:
Welcome Statement
How to Play
Terminology Primer
More Details (this includes information to help you understand how to play the
simulation)
Complete the Harvard Business Simulation individually and track and save your
results.
Create a 1,050-word analysis of the team members' decisions during each phase (1-
3) and how they influenced each member's final results.
Analyze the influence of member's decisions on sales outcomes or metrics of SNC.
Analyze the influence of member's decisions on EBIT outcomes or metrics of
SNC.
Assess the influence of member's decisions on Net Income outcomes or metrics of
SNC.
Analyze the influence of member's decisions on Free Cash Flow outcomes or
metrics of SNC.
Assess the influence of member's decisions on Total Firm Value outcomes or
metrics of SNC.
Cite a minimum of two scholarly references.