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    Capital Budget Evaluation Techniques for Guillermo Furniture

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    Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the tasks of determining which decisions provide the greatest returns.

    Recommend a course of action based on a capital budget evaluation technique and include present value calculations as part of your recommendation.

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    https://brainmass.com/business/cash-budgeting/capital-budget-evaluation-techniques-for-guillermo-furniture-384115

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    I used net income as a proxy for future cash flows and estimated earning for five years. I used total assets as the ...

    Solution Summary

    I used net income as a proxy for future cash flows and estimated earning for five years. I used total assets as the investment. These are not reasonable assumptions but it gives you a template to use so that when you have these amounts, you will be all set. Solution attached as Excel.

    I also created my own numbers that were more reasonable so you can see how it works with credible amounts.

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