Publication Date
Spring 5-2023
School
School of Engineering and Computational Sciences
Major
Engineering: Industrial and Systems
Disciplines
Industrial Engineering
Recommended Citation
Wiese, Elizabeth, "The Development and Use of the Probabilistic Financial Decision Model for a Company Expansion" (2023). Senior Honors Theses. 1332.
https://digitalcommons.liberty.edu/honors/1332
Abstract
In the United States, companies are expanding constantly. However, in an industrial equipment dealership expanding into a new state, it is important to understand the industry, new market, and costs associated with expanding. With using financial statements of data-backed percentages for growth, research seeks to set up a financial model to see if expansion for an industrial equipment dealership into the state of North Carolina will be a financially wise decision. Wesley Worldwide, an industrial equipment dealership, is moving forward with the investment of expanding into North Carolina. However, it is vital to understand the financial predictions for profit return on investment. The methodology for doing this was to collect all previous sales, gross profit, expense, and market data, and research to create a model to detect and predict the future markets and sales growth potential in North Carolina. Through all the previous data, three different forecasts were made. Not only does this mathematical model predict the success of expanding into North Carolina, but it also creates measuring points along the way for what needs to be improved or focused on the most while in the expansion period.
