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BASICS OF CAPITAL BUDGETING You supplier of auto repair parts used in the after-market with products from Daimler AG, Ford and other automakers. Your boss,

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BASICS OF CAPITAL BUDGETING You supplier of auto repair parts used in the after-market with products from Daimler AG, Ford and other automakers. Your boss, the chief financial officer (CFO), has just handed you the estimated cash flows for two proposed projects. Project L involves adding a new item to the firm's ignition system line; it would take some time to build up the market for this product, so the cash inflows would increase over time. Project S involves an add-on to an existing line, and its cash flows would decrease over time. Both projects have 3-year lives because Allied is planning to introduce entirely new models after 3 years. recently went to work for Allied Components Company, a , Toyota

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