CHAPTER 13 | Capital Budgeting decisions Scenario Your client owns a successful restaurant in downtown Chicago. She wants to open a second restaurant in the suburbs and has asked you to help her choose between two locations. Key information is listed below. Using the four capital budgeting methods that we know, prepare a presentation that showS your recommendation to your client (and why) Oak Park Rosemont Initial Investment $2,500,000 $2,500,000 Annual cash inflows $1,000,000 $1,200,000 Annual cash outflows $400,000 $550,000 Annual non-cash (all depreciation) expenses: Use straight line depreciation to find! #of years of expected useful life of project 20 For both, assume no residual value and: Discount Rate 7% 25