IMPORTANT NOTE: The questions must be addressed in its full context. These questions are an opportunity to go outside the box to demonstrate your analytical, integrative, problem- solving and critical thinking skills using the knowledge acquired in your readings. As a result, it is very important to pay close attention to the questions and be able to conduct your discussions in the context of your question. – Please keep this in mind when you complete this assignment.
You must expand your ideas further. Analysis must be deep and very instructive.
ANSWER THE FOLLOWING QUESTIONS. Each question should be answered in at least 300 words. Quality of content and use of course and outside-of-course resources to support your position or analysis. The answers should not be in the form of essay, just straight to the point- Work must be original and cite your sources.
Please be sure to answer the question completely but specifically in well-written complete sentences.
Use the attached lecture to help you answer these questions, and conduct your own research
1. From the Chapter 7 discussion question you have settled upon one of the two proposed projects. Now you need to understand the requirements associated with capital budgeting for this project as you move forward. Based upon your study of material in Chapter 8, what are the major steps involved in the capital budgeting process?
2. In your study of the capital budgeting process it is obvious that you need to understand the concept of free cash flow related to the project selected. Discuss the adjustments that will need to be made to the estimated free cash flow in your evaluation of the selected project. Include in your discussion comments as to the roll that salvage value of equipment would play in your estimate of free cash flow.