Financial Expansion Analysis Summary Capital budgeting is an important decision making tool used to help organizations decide whether to accept or reject potential projects. Through applying this method to Mel & Bud Inc. one is able to determine if the company should purchase new equipment to increase the company’s printing capabilities. Additionally, capital budgeting occurs in three steps, finding the required rate of return via the weighted average cost of capital (WACC), calculating relevant cash flows, and analyzing the cash flows through capital budgeting tools such as the net present value (NPV) and internal rate of return (IRR) (Colorado State University-Global Campus, 2017). Once these steps are completed, the potential financial
