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Running head: CAPITAL BUDGETING CASE 1 Capital Budgeting Case Gail Garrison QRB/501-Quantative Reasoning for Business August 26, 2013 Melinda Gregg CAPITAL BUDGETING CASE 2 Capital Budgeting Case The following paper is a follow up report for the excel report already submitted. The excel report gave information regarding the five year projected income for the two corporations that this company is interested in buying. Along with the revenue, expenses, and taxes for both companies, the excel report gave information on the Net Present Value (NPV) and the Internal Rate of Return (IRR) for both companies. The report is to show the capital budgeting for the five years that the company will need to purchase either company A or company B, and make them profitable. The Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield and is used in capital budgeting to assess the profitability of an investment or project, (Investopedia, 2013). ... View Full Document

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