Problem no. 1 I have chosen to discuss the commercial construction sector. Internal forms can be used to evaluate the company as a whole or internally within smaller divisions for comparison, future planning and generation of future projects (Ross et al, 2012). External financial forms can help the company evaluate suppliers and provide external companies with potential investors. It can also be instrumental in determining the financial position of your competitors to compete with them. Internal/external modules needed to calculate financial values ​​and ratios: • Cash Flow Statement – ​​Provides a summary of cash usage over a period of time. • Profit and loss statement – ​​Expresses what happens to each dollar of sales as a percentage. • Balance Sheets – Snapshot of company finances used to compare current assets and liabilities. • Comparison of profitability ratios (Profit Margin (PM), Return on Assets (ROA) are great tools to evaluate the financial health of the company. Table 3.8 in our textbook provides various other tools such as: Return on Equity ( ROE) and market value ratios (price-to-earnings ratios, PEG ratios, price-to-sales ratios, market-to-book ratios, Tobin's Q Ratio, enterprise value-EBITDA). Profit margin is used to determine profitability. A higher profit margin is preferable. If a construction company maintains low profit margins, it can effectively manage risks, which can determine whether it will make a profit and/or ultimately survive as a business (Cavignac & Associates, 2014). A debt-to-equity ratio is a ratio of long-term solvency measures. These concern the company's long-term ability to meet its obligations and financial leverage and can help a company effectively manage its debt, meet its obligations and maintain healthy financial leverage... middle of paper. .. such as turbines, diesel and natural gas engines and electric locomotives (Gaurang, 2012). The efforts of this case study were directed at modeling and creating operational improvements. The company used both IRR and NPV. The model used identified inefficiency improvement opportunities in operations and therefore provided a project IRR of 32% and NPV of $1.5 million, which was an indication of some reduced inefficiencies (Gaurang, 2012). IRR is another interesting tool because, like NPV, it also considers all cash flows and uses the time value of money. It also provides a similar answer to NPV calculations. Disadvantages of using the internal rate of return (Ross et al, 2012): • An unusually high number can often occur if a large portion of the project's cash flow occurs early in the project's life. • Possibility that the values ​​obtained may be interpreted incorrectly