What does the 5-year financial plan primarily show?

The five-year financial plan primarily illustrates the estimated cost and time for significant capital expenditures. This type of plan is designed to highlight major investments that an organization anticipates making over a five-year period. By focusing on capital expenditures, the plan helps management and stakeholders understand the financial commitments necessary for projects such as infrastructure, equipment, or facility upgrades.

Highlighting the estimated costs allows for better budgeting and resource allocation. Furthermore, outlining the timeline for these expenditures is crucial because it provides a clear view of when funds will be required, helping to ensure that the organization is financially prepared for these investments.

While the other options touch on important aspects of financial planning, they do not encapsulate the primary purpose of a five-year financial plan as comprehensively as the correct answer. Projected revenue, expected budget deficits, and personnel costs are all significant, but they primarily feed into the broader context of financial management rather than focusing on the capital investment strategy that is central to a five-year plan.