Our discussion this week will provide an opportunity for us to 'think and dream big' in a capital budgeting sense. Your task will be as follows:
- Go to either of the following websites: www.ted.com or fora.tv. Both of these sites provide video presentations on a variety of topics, some of which deal with new innovations and ideas. Watch some of the videos that deal with new ideas/innovations and choose one that resonates with you.
- Describe the idea for your classmates and provice a link to it. Try to capture the idea presented in the video in a capital budgeting framework. Try to identify the various costs of a project, the cash flows associated with it, etc. That is, if you were to translate the idea into a capital budgeting framework, how would you do it? What factors would you need to consider in your analysis? These will be very general in nature--not specific dollar amounts.
- Describe any positive or negative externalities that might result from the project. (NOTE: externalities are benefits/costs outside of the original transaction--e.g., pollution control results in better health outcomes).
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