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9. Capital budgeting and the post-audit process In January 2018, Cammonwealth Biofuels LLC opened a preduction facility that a capoble of producing 2 millon gallons

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9. Capital budgeting and the post-audit process In January 2018, Cammonwealth Biofuels LLC opened a preduction facility that a capoble of producing 2 millon gallons per year of etranoi from cellulosic material. The company wants to expand and open three more ethanol production facileles within the next two yeers. The venture casial firt that financed the company's first project has asked the company's management tearn to perform a post-audit on the initial project. The venture capital fim will use the information from the post-audit to help evaluate the company's plans for expansion. Which of the following would be part of the pastaudit? Check all that apply. The management team will need to compare the projected selling price of ethanol to the actual seling price of ethancl. The managerment team will need to determine if it wants to use straight-line or accelerated depreciation to depeeciate the property plant and equipment used in the initial project. In instances where the company's estimated costs were different from the actual costs, the managen'sint team wiil need to explain wiy these differences occurred. When a firm is forced to employ capital fationing, it generally means that the firm has postive NPV proyects than it can tinaince. 9. Capital budgeting and the post-audit process In January 2018 , Camnseweath Bisfuels LLC opentd a productisn facility that is capable ef producing 2 milisn gaflons per year of echarol thom cellulosicmaterial. The company wants to expand and cpen three more etanol grocucion taclices within the next bwo years. The venture captal firm firm wal use the information from the post.abdit to help evaluate the cemeany's plans for expansiget. Whech of the following wosl d be part of the past. audit? Check ait that apply: The management team will need to compare the projected seting price of ethansl to the actuat selirg srice of ethanol The management team wal need to determine if it wants bo ise stralght we of accelerated desireciatien to cepieciabe tie sropertas.piant, and ecupment used in the inital project. In instances where the company's estimated costs were different frem the an a, the management team wit meed to cepiain way these differences occurred. When a firm is farced to employ capital raciscing, it generathy means that the firm has postive kiy projects than i can finance

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