the exercise and solution given is an example that should be followed. which means that I have to provide an exercise and a solution to it similar to the example given.

Capital Budgeting decision exercise : 1- Come up with an investment project for the retail pharmacy Walgreens boots alliance. 2- Determine the total amount of the investment ( put in a chart each cost of the assets necessary to fund the project) 3. Determine the cash flows the investment will return 4- Determine the residual/terminal value. 5- Determine the annual cash flows of the investment 6- calculate the NPV of the cash flows. 7- run a sensitivity analysis Here is an example u should follow : the purchase of a truck to be used by AAA Trucking for making local, short haul deliveries. AAA plans to acquire the truck, use it for 4 years and the sell it for fair value on the resale market. It plans to use the sales proceeds as a down payment on a more modern replacement truck. It estimates the WACC at 14.00%. Step 1: determine the total amount of the investment : Capital Investment Purchase Base Model Truck $35,625 Add Cargo Lift / Paint Logo $14,580 Sales Tax $2,494 Registration and Other Costs $1,200 Total Capital Investment $53,899 Step 2: determine the cash flows the investment will return: 592.50 S12.45 SEX 514 Fuel Costa Tu Maintenance Operces SAUD Net Operating come Deprecate income Betres 523.94 310 $12.14 510,76 SI5.0 S. 510 SIR, $3104 SOLO S4655 Nina 310 Ata De S. $10.00 LOL 510 O SI Step determine the reso/termino Using AMA cash flows and discountate a terminal value $27.250 14.00 $194.000. This terminal value is a proxy for all can do that will occur beyond the scope of the projection Stepdate tento cewe the investment Step Steak the NPV of the cash flows Stepty na Below is a summary table of the impact to the NPV through altering the capital investment cost and holding all other assumptions the same. Note that an increase to 140% of the baseline estimate still results in a positive NIV Percent of Capital Net Present Projection Investment Value 100 (553) SA 110 (559.269) $16.455 120 (564,6793 $11,065 1309 $70,000 140N (S75,459) SRS 150 (5610.649) NPV will reduce as the residual value decreases, but we can see from this analysis that even if the residual value drops to So, holding all other assumptions constant, the NPV is still positive. Percent of Base Projection Residual Value 100% $10.923 30% 58,73 60% 40% $4,369 20% $2,185 0% SO Net Present Value $21,845 $20.551 519,258 $17.964 516,671 $15,372 From just these two analyses, we can see the project is quite stable and robust Even with errors in the base projections of these two variables, the project still warrants further consideration via a positive NPV. theme of charts is necessary