Calculate the NPV of the project for investment
decision making.
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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.
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