Capital Budgeting involves a strategic planning process for determining the viability of long-term investments (Srivastav, wallstreetmojo.com). It helps in assessing if projects will be beneficial for the company and yield the anticipating returns in the coming years. Target Corporation ("Target") current value of their EBITDA is $6,548,000 and the company has an opportunity to expand their market by purchasing a small manufacturing company, which would produce a 10% EBITDA and is equal to $654,800. The purchasing price of this small manufacturing company is $52,384,000. In other words, it is 8 times the 10% EBITDA. Before proceeding with the investment, it is necessary for Target to complete an evaluation of the risks of the investment. Target is not willing to make any changes to the current capital structure because of the volatility of the current market