Welcome! You’re thinking of starting a lemonade stand. Use capital budgeting tools to explore whether this is a smart investment.
Initial Investment: This is how much money you need to start the lemonade stand. It includes equipment, supplies, licenses, etc. It's money spent up front and is considered a cost.
$
Discount Rate (WACC): This represents your required return. It’s the rate you'd expect from another investment of similar risk. Also called Weighted Average Cost of Capital.
%
Each year, you'll earn profit (revenue minus cost). Estimate your net cash flows for each year:
Year 1:
Year 2:
Year 3:
Year 4:
Year 5: