Basics of Financial Principles

Wthin the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

You are the chief financial officer (CFO) for an organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability. Prepare for the next manager’s meeting by responding to the following prompts:

• Explain how a capital budget and a return on investment contribute to sustainable growth.
• Clarify the role that risk analysis plays during capital investment decision making.