Running head: ABC COMPANY
ABC Company
Name
Institution
Date
ABC COMPANY 2
Executive summary
ABC Company, a firm that specializes in cedar roofing and siding shingles is affected by
many factors that are likely to cause a threat to the company. The company also is not steady
keeping in mind the unstable economy at the present. There is likelihood that the main factor in
the company’s cash flow is its operating activities, more so found in the net income. The stand
taken in this project as per the investment of the company’s income earnings securities is without
doubt enhance cash flow. Looking at the state at which the company is moving, there is a
complete need for extra financing. The NPV of the intended investment is not good enough and
therefore the best advice is for the CEO not to wholly depend on his decisions. On the other
hand, such measures will act in a way that may lessen the expenditure on production which
thereafter will be a sign of advantage on the company to invest and thereafter gain it objectives.
The aim of this research study is to help the CEO of ABC Company make decisions on
the new project and whether it would be have benefit to the company not forgetting that ABC
Company is running out of money. Quick and deep reasoning should be made not to mess the
company’s finance in a way that it won’t give positive returns.
The report should be in a position to give a clear picture of the process. This can only be
provided through an analysis based on information presented through such financial statements
like income statement and balance sheets. Together with the above documents, this project is
dependent on an absolute analysis executed at the ground level giving a step-by–step procedure
concerning the new project. Generally, the scheme of the report is to deliver an essential and
logical knowledge in regards to the new project.
ABC COMPANY 3
Part I
The overall perspective of risks profile
There is so much when it comes to industry and economic problems because risks are always
there and there is no day it will all be wiped. Different kind of threats can be seen to cause
unbalanced industry and projects economy. This is evident in the ABC manufacturing company
which poses a high chance of risks. Take a look at the following:
Competitors – Talking of competition does not necessarily mean the already set
companies in the field taking the same product. Employees can also gain knowledge after
working for some time in the company, firm or organization. The working experience
gained through such a given time equips them with enough knowledge to go out there
and start their own firms. Another form of competition is the advantage of gaining
