Danforth And Donnely Case Summary

In the case of Danforth and Donnely, multiple questions are brought up concerning whether or not certain events count as cash flows. One such argument is whether or not the marketing costs of Blast should be considered as a cash flow. Another cash flow argument concerns the working capital required for Blast. The new product would also use excess production facilities and building space and could conceivably incur cash flows. Erosion from sales of current laundry products is also argued as being a possible cash flow. Finally, the question of debt, as funding for the project, is questioned of being a cash flow. The question of cash-flow-or-not for each of these dilemmas can be answered by looking at some of the the principles of corporate Finance.