Project Assignment on Rockboro Machine Tools Corporation

What risks does the firm face? Comment on the nature of the industry, strategy of the firm, and firm’s performance. Also consider the impact of a decline in sales growth and net income as percentage of sales on excess cash (or borrowing need) and unused debt capacity (Here, you can again use Exhibit 8. You can consider 12% as sales growth and net income as percentage of sales one percent less than the original model. Also try different assumptions of sales growth and profit margin and evaluate the impact on excess cash (or borrowing need) and unused debt capacity. Please summarize your findings in a table).