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Fingame Final Report

Satisfactory Essays

Overview Team E chose to adopt and implement a middle of the road strategy in production, pricing, financial and capital (both purchase of machine/plant and project) decisions. By eliminating extreme choice options in pricing, production and financing, Team E strove for consistency in an effort to maintain steady growth and find the optimal capital structure. We finished the simulation in fourth place as shown in Exhibit 1, which represented a 148% increase in Accumulated Wealth. Exhibit 1 - Accumulated Wealth Results

$150.00

$120.00

$90.00

$60.00

$30.00

Team A Team E Team I Team O Team U

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Exhibit 2 – Cash and Marketable Securities Balances

Cash Marketable Securities Penalty Loan Balance Q1 Q2 1,334,931

200,000

-­‐

Q3 1,858,005

200,000

-­‐

Q4 1,628,410

200,000

-­‐

Q5 Q6 Q7 Q8 Q9 120,638

200,000

-­‐

965,628

200,000

-­‐

177,555

-­‐

-­‐

434,509

199,978 75,775

-­‐

-­‐

-­‐

2,500,000

-­‐

-­‐

We were never able to determine an optimal cash balance with the information given for the simulation, so we combined our real life experiences in companies of similar size and determined we were close to what they would realistically carry as cash balances, taking into account the need for continual capital purchases.

We had only one stock-out during

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