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Read the Harvard Business School Press case, Sneaker 2013. Answer the following questions in an Excel spreadshe 1. Should the following be included in
Read the Harvard Business School Press case, Sneaker 2013. Answer the following questions in an Excel spreadshe 1. Should the following be included in Sneaker's 2013 capital budgeting cash flow projection? Why or why not? 1. Building a factory and purchase/installation of the equipment 2. Research and development costs 3. Cannibalization of other sneaker sales 4. Interest costs 5. Changes in current asset/ current liabilities accounts 6. Taxes 7. Cost of goods sold 8. Advertising and promotion expenses 2. Which cash flows should be incorporated into the Persistence project's forecast? Why or why not? 3. For either Sneaker 2013 or Persistence, produce a projected capital budgeting cash flow statement for the project by computing the following: 1. What is the project's initial investment outlay? 2. What are the project's annual net operating cash flows? 3. What is the project's terminal net cash flow? 4. Compute payback period, net present value, and internal rate of return. 5. Prepare to discuss your analysis in class.
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