Answer:-
Including capital in a business case financial analysis ensures accurate budgeting and investment decisions. First, identify the required capital, including fixed assets (equipment, property) and working capital (daily operations). Then, assess funding sources like equity, loans, or retained earnings. Use financial metrics such as Return on Investment (ROI), Net Present Value (NPV), and Payback Period to evaluate profitability. Factor in risks, depreciation, and cash flow impact to provide a complete picture. A well-structured capital analysis strengthens decision-making, helping stakeholders understand financial feasibility and long-term sustainability.
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