CASE WRITE-UP 2 Instructions: Answer all questions below. Make sure to show your work. Your answers must be typed. (TOTAL = 100 POINTS) Sneaker 2013 Questions Should the following be included in Sneaker 2013’s capital budgeting cash flow projection? Why or why not? a. Building a factory and purchase/installation of the equipment b. Research and […]
Tag Archives: Cannibalization
Why should companies use project cash flow rather than accounting income when finding the NPV of a project?
CASH FLOW ESTIMATION AND RISK ANALYSIS Home Depot Keeps Growing Refer to Table 12-1 and answer these questions: (1) If the WACC increased to 15 percent, what would the new NPVbe? ($2,877) (2) Look at Part 1, Input Data. In what direction would NPV bechanged by an increase in each input variable? (3) If the […]
