Help with business question

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vprdhrra

Business Finance

Question Description

Describe why leading indicators are relevant in developing forecasts for a business. Would your assumptions change if the leading indicators seemed to show a pending downturn? How might this affect your plans for capital expenditures? no copying 

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Explanation & Answer

They are useful

To match inventories to business cycles.

To evaluate new business opportunities.

It depends on factors like size, cushion to absorb losses etc.

When new opportunities exist, they result in capital expenditures.

For example solar panel for tapping renewable energy will involve capital expenditure to make bigger panels.

Reference:

http://www.dummies.com/how-to/content/economic-indicators-for-dummies-cheat-sheet.html


znquninag (2757)
New York University

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