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1. Your firm is looking into expanding regionally. The firm is deciding whether to open a brand-new warehouse in Bridgeport, CT to simplify future distribution in the Northeast. The warehouse would need new staff, need additional equipment and require upfront funds to account for unpredictable additional costs or delays in incoming cash flows from day to day operations. You are the financial manager for the firm and need to decide if this venture is worth it from a Financial standpoint.

Before a decision is made, please describe the process you would go through in estimating your cash flows in developing your capital budgeting analysis for this project.

1. What information/data would you need to model and analyze the viability of this project and to decide if your firm should, indeed, expand in Bridgeport. Be specific and thorough in terms of some of the key data you will need considering this particular situation given the specific Asset being purchased and operated/maintained thereafter.
2. List 4 Investment Decision Criteria discussed in this course (and in your word document notes), describe each of them briefly and choose which two of the four are most effective in your opinion. Describe why you would use these two rather than the others (i.e. why are these more robust in your opinion).

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