The outputs of a financial planning model often include:

Question

Quizplus · Accepted Answer

The main purpose of a financial planning model is to create financial projections for the future. Therefore, the most common output of a financial planning model will be projected financial statements of the firm for the years covered by the model. A is incorrect because the financial planning model is designed to create projections, not provide current statements. B is incorrect because while macroeconomic forecasts may be used as inputs into the model, they are not outputs of the model. C is incorrect because cost projections may be necessary for implementing the financial planning model, but they are not outputs of the model itself.

The Outputs of a Financial Planning Model Often Include