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    Importance of assumptions in financial planning

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    Why is it important that physical assumptions precede financial results in the planning process? For example, what's wrong with assuming you want a business that sells $ 50 million a year earning a profit of $ 5 million, and then building a revenue and cost plan to fit those goals?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:55 am ad1c9bdddf
    https://brainmass.com/business/finance/importance-assumptions-financial-planning-600666

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    Valid assumptions are important to formulate realistic financial goals ...

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    The solution discusses the importance of assumptions in the financial planning process.

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