Capital Budgeting and Narrative

Set up a Capital Budget for your selected service or programmatic enhancement. Estimate output, output prices, and revenues, including when cash will be received. Identify the type and quantity of resources needed, input prices, and when expenses will be paid. Select a discount rate and calculate the PV of future cash flows using an Excel spreadsheet. Specifically, you will decide which discount rate to use based on what you know about the MHS case and the programmatic service/enhancement you are proposing. Select an evaluation measure — either the NPV or the IRR – to assess cash flows. Chart the results on the budget Excel worksheet. Conduct sensitivity analysis using the same Excel spreadsheet. Chart the results. Use of formal APA is required for this assignment.