Calculate the NPV of the project for investment decision making. 40 Of course we can also use other tools: IRR or payback.
2 C it l B d ti F Si l P j t 2. Capital Budgeting For Single Project (1) Capital Budgeting Procedures: One investment project Forecasting earnings We will use one example, the We use the structure of income statement. We use the structure of the statement of cash Calculating cash flows Calculating project NPV HomeNet project, to illustrate the procedures. flows If you cannot remember these two financial statements, please read the review file on Investment decision LIVE. 41