This case focuses on Capital Budgeting, Project Cash Flows, and key decision metrics- Two projects are outlined in the Case Sneaker 2013; Persistence; Only the Sneaker 2013 should be analyzed for this assignment (I have deleted the Persistence information for you) The following are to be considered in your analysis:- What should be included in the capital budgeting cash flow projections? Consideration should be given to the following:a. Building a factory and purchase/installation of equipmentb. Research & development costsc. Cannibalization of other sneaker salesd. Interest costse. Changes in current asset/liability accountsf. Taxesg. Cost of Goods Soldh. Advertising and promotion expensesi. Depreciation charges – Explain what corporate finance concepts you used (ie. NPV; DCF; IRR) and include the calculations if available.- Create pro forma statements based on these concepts *Note: the analysis (written portion) does not need to be more than 2 total pages. I have it as 5 to give more room for the numerical analysis/graphs/etc). If you only need as little as 2 pages of written work and choose to use the rest of the space for graphs or need more than 3 mages for graphs, that is okay. The primary focus will be the numerical analysis and projections based on what you are given although the written analysis/explanation is important as well so if that takes up as much as 3, that is fine. Use your best discretion All other considerations are listed in the file.
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