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Financial Analysis and Flaws

Please help with the following problem.

I have a project about how to perform a projected financial analysis and to include at least one flaw that can result from an incorrect projection. I'm just looking for a start, so 200-300 words will be just fine.

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That hardest part of any financial projection is to properly forecast sales. It is particularly difficult because so much of what future sales will be are beyond the control of a company. The markets are fickle and consumers have very little product loyalty. Further, forecasting in the international business world can be hazardous because of unknown events in other countries.

Secondly, many of the cash outlays for expenses of a company are related or calculated as a percentage of sales. ...

Solution Summary

In the following posting, performed projected financial analysis for a project are given. The incorrect projection results are provided. Concepts discussed include management bonuses, budgets and international business. The solution is given in 326 words.