财务管理基础全套配套课件沈洪涛 ch10.ppt

《财务管理基础全套配套课件沈洪涛 ch10.ppt》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

1、CHAPTER10TheBasicsofCapitalBudgetingShouldwebuildthisplant?Whatiscapitalbudgeting?Analysisofpotentialadditionstofixedassets.Long-termdecisions;involvelargeexpenditures.Veryimportanttofirm’sfuture.StepstocapitalbudgetingEstimateCFs(inflows&outflows).AssessriskinessofCFs.Determine

2、theappropriatecostofcapital.FindNPVand/orIRR.AcceptifNPV>0and/orIRR>WACC.Whatisthedifferencebetweenindependentandmutuallyexclusiveprojects?Independentprojects–ifthecashflowsofoneareunaffectedbytheacceptanceoftheother.Mutuallyexclusiveprojects–ifthecashflowsofonecanbeadverselyimp

3、actedbytheacceptanceoftheother.Whatisthedifferencebetweennormalandnonnormalcashflowstreams?Normalcashflowstream–Cost(negativeCF)followedbyaseriesofpositivecashinflows.Onechangeofsigns.Nonnormalcashflowstream–Twoormorechangesofsigns.Mostcommon:Cost(negativeCF),thenstringofpositiv

4、eCFs,thencosttocloseproject.Nuclearpowerplant,stripmine,etc.Whatisthepaybackperiod?Thenumberofyearsrequiredtorecoveraproject’scost,or“Howlongdoesittaketogetourmoneyback?”Calculatedbyaddingproject’scashinflowstoitscostuntilthecumulativecashflowfortheprojectturnspositive.Calculati

5、ngpaybackPaybackL=2+/=2.375yearsCFt-1001060100Cumulative-100-900500123=2.4308080-30ProjectLPaybackS=1+/=1.6yearsCFt-1007010020Cumulative-100020400123=1.6305050-30ProjectSStrengthsandweaknessesofpaybackStrengthsProvidesanindicationofaproject’sriskandliquidity.Easytocalculateandun

6、derstand.WeaknessesIgnoresthetimevalueofmoney.IgnoresCFsoccurringafterthepaybackperiod.DiscountedpaybackperiodUsesdiscountedcashflowsratherthanrawCFs.DiscPaybackL=2+/=2.7yearsCFt-100106080Cumulative-100-90.9118.790123=2.760.11-41.32PVofCFt-1009.0949.5941.3260.1110%NetPresentValu

7、e(NPV)SumofthePVsofallcashinflowsandoutflowsofaproject:WhatisProjectL’sNPV?YearCFtPVofCFt0-100-$1001109.0926049.5938060.11NPVL=$18.79NPVS=$19.98SolvingforNPV:FinancialcalculatorsolutionEnterCFsintothecalculator’sCFLOregister.CF0=-100CF1=10CF2=60CF3=80EnterI/YR=10,pressNPVbutton

8、togetNPVL=$18.78.RationalefortheNPVmethodNPV=PV