2024 – Assume you are planning to start a new business that will sell innovative consumer products via an online store

Assume you are planning to start a new business that will sell innovative consumer products via an online store.  You will be pitching your idea to potential investors with the goal of securing funding.  Your investors are very savvy and want to review a well thought out financial forecast.  Using the examples provided in Chapter 6, construct a hypothetical 5 year Cash Flow estimate including depreciation and tax-related amounts.  Be sure to show your detailed calculations and document at least five key assumptions.  Also, explain why cash flows occurring at different intervals should be adjusted for a common date in order to allow for a proper comparison.

Hickman, K. A., Byrd, J. W., & McPherson, M. (2013). Essentials of finance [Electronic version]. Retrieved from https://content.ashford.edu/

• Chapter 6: Relevant Cash Flows for Capital Budgeting
• Chapter 7: Corporations Making Investments
• Chapter 8: Leverage, Financial Risk, and Firm Value

Multimedia

gordonhensley. (2012). Capital budgeting lecture (Links to an external site.)Links to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=TrKVj_wLgUc
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Recommended Resources

Articles

La Rocca, M., La Rocca, T., & Cariola, A. (2011). Capital structure decisions during a firm’s life cycle. Small Business Economics, 37(1), 107-130. doi: http://dx.doi.org/10.1007/s11187-009-9229-z

• The full-text version of this article can be accessed through the EBSCOhost database in the Ashford University Library.

Norton, E. (1991). Factors affecting capital structure decisions. The Financial Review, 26(3), 431-431. Retrieved from The ProQuest database.

• The full-text version of this article can be accessed through the EBSCOhost database in the Ashford University Library.