Discusses the various capital budgeting techniques available to any business when making an investment decision in increasing their capital,

You are the Chief Financial Officer of a big fast food company based in Indiana. The company is considering opening a new location in Indianapolis and the CEO wants to know, among many other things, your plan and justification of how dollars will be spent on this long-term project.

Provide your analysis by including the following factors- What methods should be used in this assessment? What are the potential risks? What kind of cash flow can be expected over the period of this locations’ existence? What would be your recommendation of the kind of funding needed- debt, equity or both?

Answer rating: 100% (QA)

In the given scenario the company is planning to open up a new fast food store in another location This is a classic case of capital budgeting wherein ... View the full answer