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Capital Budgeting Decisions CASE STUDY
Learning Objectives
1. Understand how to use EXCEL Spreadsheet
Develop proforma Income Statement Using Excel Spreadsheet
Compute Net Project Cashflows, NPV, and IRR
(c) Develop problem-solving and critical thinking skills
		and make long-term investment decisions
1) Life Period of the Equipment = 4 years
2) New equipment cost
3) Equipment ship & install cost
4) Related start up cost
5) Inventory increase
6) Accounts Payable increase
7) Equip. salvage value before tax
	Discounted Payback Period
	Year
	0
	1
	2
	3
	4