1. Which of the cash flows associated with the retail location opportunity (future, cash, or different) are relevant? Of these, which are recurring costs, and which are one-time costs? 

2. Perform a yearly analysis for the retail location opportunity for both the original and reduced sales projections using the below format. Calculate the return on investment and the payback period.   INFLOWS ORIGINAL LOW Total inflows OUTFLOWS Total differential outflows Net cash flow INVESTMENTS 22,081 Total differential investments Rectum on investment Payback 

3. As for Snobelen, would you open the retail location at The Market?  

4. Assume that all the division managers do overstate cash flow projections in their proposals. What would you do if you were recently promoted to division manager and had to compete for funding under these circumstances? What controls might be implemented to discourage the overstatement of capital budgeting estimates by the division manager.