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Select a company to use to respond to three prompts. Respond to these three prompts using your company. Describe a significant capital investment that you
- Select a company to use to respond to three prompts.
- Respond to these three prompts using your company.
- Describe a significant capital investment that you believe the company may wish to consider. Include enough background information that the reader will be able to fully understand the proposed investment. For example, Intel may wish to build a new fabrication facility to manufacture computer chips.
- Describe all of the issues that you believe might have some impact on the project's cash flow. (Existing product lines, cannibalization of revenue streams, cost savings of new technology from the investment, depreciation, salvage value of old machinery, etc.)
- Describe a process by which you might go about collecting all of the information needed to complete the exercise of setting up the cash flows. Describe whom you would probably need to meet with in order to get all the necessary information. Provide an estimate of how long you think it might take just to get all the estimated cash flows in place prior to doing the capital budgeting analysis. Do you rate this as an easy exercise or a difficult one?
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