Answer & Explanation:Here we develop the theory and application of capital budget analysis. Capital budgeting is arguably one of the most critical functions that financial management performs.This is not a term paper, 4 paragraphs or 5 will suffice, along with the sample calculations.Imagine that you own a business. Assume that this business is very successful. Dream about this for a minute. Then, briefly describe the business and its activities. Explain the product or service and the location of the business. The business is a pizza restaurant, located in Washington, D.C.1. Assume that your business is so successful that you feel that you need to open a second location, or factory (as appropriate to your idea.) How will you determine whether or not this is a good idea? In other words, what financial management tools do you have at your fingertips that you can use to help you make this decision? Please explain your choices, and which tools you feel would be most useful. Give us a sample calculation for each one.2. Once you have decided to expand, how will you finance this endeavor? What are your choices? Please discuss each option and explain your choice. THINK REALLY BIG on this one. How would get a hold of A LOT of money?HINT I am looking fo
r you to incorporate concepts from previous units. What are the advantages of the options you have chosen?Some of the concepts we have used are the following, choose 2 or 3 (that make sense) to complete the assignment and discuss why those options were chosen.Financial StatementsDuPont Analysis, Return on Investment RatiosOperating Cycle and Cash Conversion Cycle RatiosLiquidity and Profitability ratiosActivity and Leverage RatiosFV and PV of a single amount annuallyFind Number of P erios or Find Growth RateFV & PV of a Single Amount Non-AnnuallyFV and PV of Ordinary annuity AnnuallyPV of Mixed StreamFV and PV of annuity due annuallyFV of mixed streamPerpetuity, EAR, RRRBond Current YieldValue of Bond AnnuallyValue of the Bond Semi AnnuallyYTM annually, semi annuallyZero-coupon bondBond yield to call YTM and Price After Original IssueBonds and QuotesValue and Expected rate of return on preferred stockValue of Common stock, Expected rate of return on Common StockCAPM, Beta Portfolio, Portfolio expected returnExpected return and standard deviation on stock using probabilitiesHPR, Annualized holding period return, effective annual rate of investmentPayback period and discounted payback periodNPVIRR and MIRR annually and semi annuallyProfitability Index