Indian River

Exam 2
Capital Budgeting
(Executive Summary)









Sergio Silva
FIN 4424
3-15-2012
After winning much time and effort in reviewing the Indian River citrus tree Companys upper-case letter budgeting procedures it seems that there is much educating to be done. In this case my partner Lili and I puzzle been reviewing more peachy budgeting decisions and trying to figure out if they are expenditure it or not. For a quick background on our family we need to mention the owner and founder Matthew Stewart. He began this society right after WWI and since then his orange succus keep accompany has bloomed. We first began by looking over a bracing lite orange juice line to see if the if it do sense to undertake production. There are many things that go into the capital budgeting process like finding out incremental cash escapes and deciding if we should spend money on rehabilitating our plants. We have a couple get winds that are being looked into right now. The project that we are deprivation to talk about now involves the current lite orange juice line. Lili and I are going to talk a little about the theory of capital budgeting so our executives can have a better soul on how we make capital budgeting decisions.



As a fleet we will use the new lite orange juice project to make sure we make good capital budgeting decisions. To start talking about capital budgeting we need to do it exactly what it is. We use capital budgeting at Indian River citrus tree to find out if a new product is in truth worth the value we put into it. We also try to construe how much revenue is going to be made by taking on this project. I think that we need to begin talking about what exactly an incremental cash flow is. An incremental cash flow is usually defined as the difference between the companies cash flow with the project and the companys cash flow without pursuing the project. This really helps image an estimated value for how much revenue the project will die in return. Since the project is using 10...If you want to get a full essay, order it on our website: Ordercustompaper.com



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