It is likely that your What the World Needs Now project will involve cash inflows and outflows
Question:
It is likely that your What the World Needs Now project will involve cash inflows and outflows over multiple years.
1) Explain your product/project and list the
a) Initial costs and other initial outflows - As much as possible - find real data for your project
b) List the cash inflows showing your expected selling price and number of units sold
c) List the cash outflows showing your number of units sold - As much as possible - find real data for your project
2) Prepare a Capital Budget for a portion of your project.
For maximum points, use actual dollar amounts researching the costs of items you will need, the amount you will be able to charge, and any other costs and benefits available. Think about the useful life you can anticipate.
For the purposes of the assignment, assume:
- A 21% tax rate (unless you have developed a project for a nonprofit organization.)
- A cost of capital of 4%