Our textbook and lecture discuss some considerations that should be taken into account when doing capital budgeting. How will these considerations affect the project you described in the other topic? Incremental earnings, interest expenses, taxes, opportunity costs, externalities, sunk costs, cannibalization or erosion, depreciation, and salvage value; as well as others.

By the year 2030, the number of senior citizens above the age of 55 years will account more than 20 percent of the entire population, rather than the currently 12 percent. This percentage of baby boomers will amplify daily as baby boom generation ages. At the age of 55 years, most senior citizens are able to perform their errands but as the age increase their ability to carry out daily errand decreases and the need for assistance increases. Mostly depending on their health issues most seniors may need assistance with errands extending from grocery shopping, picking up medicines at pharmacies, taking pets to the vet, dry cleaning drop-off and pick-up and many other services that may require assistance (Light, 2011). The service offering service require minimal capital contribution since most of the requirement mainly involve transport. The initial capital that a person may require is a vehicle at about 15,000 USD. The vehicle is used to perform the errands and visit the senior citizens at their homes. The other cost that may be involved in the setting up of the business is advertisement of the service to most of the senior citizens. Most of the senior citizens rarely engage in social networks thus the person may incur cost of transport and television advertisement. The other cost is the cost of hiring individuals that offer the service itself. This service may involve student who may just require a small amount of income. For every senior citizen that the service is offered to they are to pay as little as $25.00 per errand. If the business manages to attract a bare minimum of 20 senior citizens who request the service daily the business manages to raise annual the business will raise $180,000 annually. The life of the business is expected to grow yearly since the age of senior person will always exist thus the need for the service is constantly growing and there will be no single time where the service will not be used. The exit cost of the service is minimal since you only have to provide information to the individuals who the service is offered to (Hosek, Kavanagh, Miller & Rand Corporation, 2013). References Light, P. C. (2011). The new public service. Washington, D.C: Brookings Institution Press. Hosek, J. R., Kavanagh, J., Miller, L. L., & Rand Corporation. (2013). How deployments affect service members. Santa Monica, CA: RAND