Investing In a Brewpub: A Capital Budgeting Analysis
Investing In a Brewpub: A Capital Budgeting Analysis
Initial investments include the following (Table 1) Capital Investments for the project “Investing in a Brewpub” Note: Data taken from Investing in a Brewpub: A Capital Budgeting Analysis. International Research Journal of Applied Finance (2013)
On the last period, the Brewpub is sold for $20,000 (estimated recovery value)The change in working capital refers to amount spent on inventory and receivables at the initial period of the project and later on recuperated at the 10th year. Sales in “best case scenario” are 7 barrels per set a year which equate to a total of 560 barrels or 138,800 pints a year at $5 Continue reading...