Assignment 1: Discussion—Considering Risk Factors

For any company to succeed it must be able to invest in its future. Investing in the future presents certain risks. These risks may be so great that the company decides not to complete a specific assignment. For this assignment, you are to identify the factors that need to be considered before a company makes an investment.

Required:

Identify specific variables that must be considered. These should include:

• Financial variables
• Nonfinancial variables
• External variables

For each of the three types of variables, provide summary of the impact of these variables on the decisions of the firm. You should also identify methods or suggestions for including all these variables in the decision making process.