Decisions and forecasts can be implemented gradually, increasing the number and complexity of the decisions as the simulation progresses, quarter after quarter. The following is a tentative decision schedule: The first decision usually encompasses projecting short-term funding needs. The second decision requires projecting earnings; the third one, deciding on whether to use trade credit or a loan. The fourth decision requires participant to decided extending cash discounts for prompt payment. Up to this round of decisions, production and marketing decisions have been automatic to allow students to concentrate on short-term funding decisions. Decisions have also been cumulative: once a decision is required or allowed in a certain quarter, it is required or allowed in the following quarters. The fifth decision is about setting production orders under uncertain sales conditions. The sixth one allows participants to consider replacing equipment with different costs and productivity. This requires decisions that will have long-term effects. Students are allowed to make any decision in the following quarters including pricing and setting promotional expenditures.
Teams are assigned points depending on their forecasts accuracy and ROE. For the long-term decisions, like replacing assets, the program assigns points depending on NPV analysis conducted by the program.
FINANCESIM has been developed by Fernando E. Arellano. He holds an MS degree in Business and a Ph.D. in Economics from Colorado State University. He has also developed VALUATIONSIM - A Corporate Valuation simulation, MANECSIM - A Managerial Economics Simulation and BANKMAN - A Bank management Simulation, the latter, with the late Dr. Richard D. Johnson. Dr. Arellano has taught at Colorado State University while pursuing his doctoral degree (1990-1993), Instituto Tecnologico y de Estudios Superiores de Monterrey in Mexico (1993-1996), at Universidad Peruana de Ciencias Aplicadas and Centrum - Catholic University of Peru, both in Lima Peru (1997-2000), and at University of Dallas in Dallas (2001-2020). He is currently retired, but still teaches a Valuation course online as an adjunct professor for Southeastern Oklahoma State University.