CAPITAL BUDGETING Natural Remedies Pty Ltd (NR) is an Australian family company that manufacture and distribute natural products for the treatment of common ailments and the promotion of good health generally. The company is now run by the Managing Director, Arthur Webber, who is also the major shareholder and the son of the founder of the company. The Board of Directors consists of three family members and two very experienced independent external directors. The two independent Directors have considerable influence on Arthur's business decisions and all major capital expenditure projects must be approved by the full board. The day to day running of the company is conducted by an Executive Management Committee (EMC) which consists of Arthur, who is the Chairman, the Marketing Director (Stuart Webber, Arthur's son), the Research Manager (Michael Potter), the Manufacturing Manager (Tom Cotton), the Quality Assurance Manager (Robyn Beaver) and the Financial Controller (Alice Chan). 2004 Mich