CAPITAL BUDGETING

Capital Budgeting

Capital Budgeting

In the first part, we have to find out the cash inflows; using marketing research reports to see the estimated sales growth, market trend, phase of time, and projected price behavior. All these factors present the groundwork for the money inflows and part of the cash outflows to calculate the NPV and IRR.

We decided to select the following data: Year Cash flow 0 - $500,000 1 $100,000 2 $110,000 3 $550,000. Based on the market study the 20 per century sales development for the first years was chosen, furthermore based on the report a 10% sales ...