Part 1. Capital Budgeting Practice Problems
Module 4 – SLP
Every company has capital projects. The company you have selected must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs.
Once you have identified the new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded? Issues might be:
Politics (getting it through committees)
Identify a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through.
The paper should be two to three pages in length, and should have references to the background materials or other sources you found for this paper. It must discuss both the estimates of the initial investments and the annual incremental after-tax cash flow that is expected to emanate from the investment.