The task is to calculate a capital budgeting for a new hotel (eco-hotel) in Ontario. Attached, you will find 4 excel files providing different statements (such as initial cost, depreciation, income statement, cash flow etc.), and there is few questions paste inside the attachment. And I will appreciate if you can solve the following question for me. Thx
1. The step to calc the capital budgeting
2. Anymore thing should I take consider?
3. Can u please correct it?
4. how should i analyze the capital structure?
Again, thanks a lot!!!! If there is any further information you need, pls feel free to contact me. thx© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/finance/capital-budgeting-7h3v
Although you need numbers from income statement, for example depreciation, you don't need to prepare one. This also applies with the balance sheet.
4. for the monthly capital budgeting, should i separate cash inflow & outflow into different department?
If this is possible, then you may. However, this would be very difficult because there are costs that can not be allocated to each division
5. inflation should not consider?
If inflation affects your cash flows, then you should include it.
6. how about business license, should i consider it as well?
Cash outlays related to business licenses SHOULD be included in the capital budgeting
7. so, the chat u send to me is the correct format for capital budgeting?
8. what factor should i consider for my capital structure? (ratio of debt & equity)
Should be the optimal structure. Optimal structure is the combination of debt and equity which minimizes WACC (see # 1)