One section I found interesting about this week's reading was the section on pro forma statements. You always hear about firm's making projections for the future, but I never truly what they were and how they worked.
One section I found confusing was the explanation of the internal rate of return used in capital budgeting. I suppose it just wasn't clear how the author explained how the irr helped create a capital budget.
Two questions
- How often should a company use a pro form statement?
- What are some of the most common mistakes entrepreneurs make when creating a budget?
I did not disagree with anything from this chapter.
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