Finance Essay

783 Words Oct 21st, 2014 4 Pages
As the CFO of ABC Company Inc I am deciding to support the CEO in the decision of investing capital and purchasing a new building and expanding the business line. This decision isn't being solely based upon the fact of above par earnings from the previous year and the fact that the financing is available; it is additional based upon the in depth analysis of the Federal Reserve Minutes, the Congressional Budget Office Economic Outlook, and the Summary of Commentary on Current Economic Conditions by Federal Reserve District. Upon reading and analyzing of the preceding sources it has come to a positive decision that the investment will be a positive impact on not only our continually growing business but the economy as well. Based on the …show more content…
This outlook also discusses the economic outlook through 2017, which would be the years that would affect our Company most right after the investment. The CBO expects that those increases in output will spur businesses to hire more workers, pushing down the unemployment rate and tending to raise the rate of participation in the labor force. The website also contains future outlooks past 2017, based upon the evaluation of the contents of the page, it supports the Company's decision to expand the business line. The final source to help make this decision was a summary of current economic conditions. Although our company needs to look into future economic conditions, when making an investment decision it's good to look at what is happening right now in the economy, what plans to happen, and even what has happened in the past. This site discusses the districts separately and as a whole. It talks about how economic conditions have been stable and are slowly on the rise; they also discuss how retail activity and the real estate market both have slight increases. The site discusses each subtopic down separately from retail to wages and prices, to agriculture and natural resources and how each have been affecting the current economy. It states how "coal productions was up, along with renewable energy sources with larger increases." This supports the fact of what

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