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PART V: INVESTMENT IN CAPITAL ASSETS
Chapter 12: Capital Budgeting and Estimating Cash Flows
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Exercise 12.1

Capital Budgeting

CCH Business Owner's Toolkit contains a wealth of information on financing, taxes, regulations, laws, and marketing. Visit Deciding to Make a Major Purchase to learn about "capital budgeting."
http://www.toolkit.cch.com/
http://www.toolkit.cch.com/text/p06_6100.asp

Q. According to the "Business Owner's Toolkit" considerations determine whether a "capital budgeting" analysis is called for?

Exercise 12.2

Estimating Project "After-tax" Incremental Operating Cash Flows

Develop A Cash Flow Statement can be found in the CCH Business Owner's Toolkit. Study the "Example of a simplified cash flow projection" section and the assumptions made in the capital budgeting example.
http://www.toolkit.cch.com/text/P06_6400.asp
http://www.toolkit.cch.com/

Q. Do you agree or disagree with the calculations used to find the net after-tax cash flows? Also, explain in detail why you either agree or disagree with the complete handling of the estimated salvage value of the new machine.

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