This PPT slide, part of the 105-slide How to Develop a Business Case PowerPoint presentation, presents an overview of the "Step 1. Input Variables" section from a Business Case Template. It emphasizes the importance of establishing foundational assumptions that will guide subsequent calculations in the analysis. The slide is structured to outline key input variables, each accompanied by a brief description.

The first input variable discussed is the "Marginal Tax Rate." This rate, set at 40% for US companies, is critical for calculating after-tax cash flows. It plays a significant role in estimating the cash flow benefits derived from tax-related factors, particularly in relation to asset capitalization. Understanding this rate is essential for accurate financial modeling.

Next, the slide introduces "Inventory Carrying." This input encompasses the total costs associated with inventory management, including capital costs and expenses tied to storage and handling. The description indicates that these costs are vital for assessing the overall financial implications of inventory on the business, thus affecting profitability and operational efficiency.

Lastly, the "Expected Revenue Growth" variable is highlighted. It addresses the anticipated growth rate during the analysis period, noting that this figure is not mandatory if actual revenues are available. This metric is crucial for generating a baseline case in the financial model, allowing stakeholders to project future performance and make informed decisions.

Overall, the slide effectively outlines essential assumptions that form the backbone of a robust business case. Each variable is clearly defined, providing a solid foundation for further analysis and strategic planning.

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Business Case Development Strategic Planning Inventory Management Business Case Template Business Case Financial Modeling Revenue Growth