Question: Read Hola-Kola-The Capital Budgeting. and create a report, answering the following questions: What are the relevant cash flows? In the capital budgeting analysis

Read "Hola-Kola-The Capital Budgeting." and create a report, answering the following questions:

  1. What are the relevant cash flows? In the capital budgeting analysis of this low-price, low-calorie project, how shall we treat:
    1. The consultant's market study cost?
    2. The potential rental value of the unoccupied annex?
    3. The interest charges?
    4. Working capital?
  2. Should we consider the erosion of the existing product -the regular sodas- in the analysis? Why or why not?

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