During week 6 we develop the theory and application of capital budget analysis.Capital budgeting is arguably one of the most critical functions that financial management performs.

The assignment for this topic consists if two parts:

Imagine that you own a business. Assume that this business isvery successful. Dream about this for a minute. Then, briefly describe the business and its activities.Explain the product or service and the location of the business.

1. Assume that your business is so successful that you feel that you need to open a second location, or factory (as appropriate to your idea.)How will you determine whether or not this is a good idea?In other words, what financial management tools do you have at your fingertips that you can use to help you make this decision?Please explain your choices, and which tool you feel would be most useful.Give us a sample calculation.
2. Once you have decided to expand, how will you finance this endeavor?What are your choices?Please discuss each option and explain your choice.THINK REALLY BIG on this one.How would get a hold of A LOT of money? HINT - I am looking for you to incorporate concepts from previous units. What are the advantages of the option you have chosen?