Problems

In Hola kola The Capital Budgeting Decision case study l Problems in this case...are
1. Lack of accurate financial projections: The case study does not provide accurate financial
projections for the proposed project, making it difficult to determine the expected return on
investment.
2. Insufficient data on the market: The case study does not provide enough information about
the current market for the product, making it difficult to determine the potential for success.
3. Lack of alternative investments: The case study does not consider any other potential
investments that might be more profitable than the proposed project.
4. Risk of over-investment: The case study does not provide any information about the
potential risk involved in investing too much in the project, which could lead to excessive
financial losses if the project fails.
5. Lack of consideration of external factors: The case study does not consider any external
factors that could affect the success of the project, such as changing trends in the industry,
competition, or government regulations.
6. Decision Making I also find problem in this case is that Hola-Kola is facing a difficult
decision about whether or not to invest in a large capital project. They have to decide whether
the expected returns from the project are sufficient to justify the costs, and if so, how to finance
the project. There are a number of risks associated with the project, including the potential for
cost overruns, changes in demand, and the possibility of technological obsolescence. Hola-Kola
also needs to consider the opportunity cost of investing in this project, as well as the effect on
their credit rating if they decide to take on additional debt to finance the project.

Or
Hola kola The Capital Budgeting Decision: Problems are in this case study
1. Determining the optimal capital structure for the company.
2. Calculating the cost of capital and expected return on investment.
3. Assessing the risk associated with a particular project.
4. Selecting the most profitable and least risky projects to invest in.
5. Forecasting future cash flows and discounting them to their present values.
6. Estimating the long-term value of a project.
7. Assessing the impact of taxes on the return on investment.
8. Analyzing the impact of different sources of financing on the return on investment.
9. Allocating resources to maximize profitability and minimize risk.