Capital Budgeting.ppt


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CapitalBudgetingDecidehowtoinvestmoneysothatitsvalueismaximizedCapitalBudgetingProcessCapitalbudget(investment)(benefit)flowsfromalternativecapitalinvestmentopportunitiesEvaluateproposalsusingselectedcriteriaIncreaseloginventorytoreduceriskofmilldowntimeduringSpringbreakup?CapitalBudgetingProcessSelectalternativestofundandimplement Reviewperformanceforfeed-back todecisionmakersBuynewskiddertoreducemaintenancecostonoldoneandincreaseproductivity?PresentValueInternalRateofReturnBenefit/CostRatioPaybackPeriodNotationARR–alternativerateofreturnB-annualnonmarketvalue,dollarsB/C-benefit/costratioEAA-equivalentannualannuityIRR-internalrateofreturnMAR–eptablerateofreturnN-projectlife,presentvalueNotationCy–costinyearyPV-presentvaluer-realinterestrateRy-revenueinyearyy-PresentValueNPV=∑=∑RyCy(1+r)y(1+r)yy=0nRy-Cy(1+r)yy=0nExampleofNPVYearProjectDCashFlows0-4005-100815+20030+6,600

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  • 时间2019-11-12