CapitalBudgeting_201.. - CITT

More documents

Recommendations

Info

Discounted Cash Flow – Net Present Value (NPV) • Present Value Tax Shield • This item appears as part of the capital budget process. The information would be provided by the Finance Department. • Present Value Tax Shield — Lost on Salvage Value • This item appears as part of the capital budget process. The information would be provided by the Finance Department. ©2012, Varmelous Ind. Inc. -- Slide 26
Discounted Cash Flow – Net Present Value (NPV) • Cash Flows Diverted from Existing Projects • Do not include cash flows achieved that could have also been earned under the previous scenario. Again, this takes us back to the concept of thinking incrementally. • Incidental or Synergistic Effects • In certain situations, a new effort may actually bring additional sales to the existing product line. When analyzing the firm’s bottom line, we should consider any cash flow that may find its way into another part of the company as a result of adopting the new project. ©2012, Varmelous Ind. Inc. -- Slide 27
Page 1 and 2: Capital Budgeting Learning Outcomes
Page 3 and 4: The Concept of the Cost of Capital
Page 9 and 10: Difficulty and importance in findin
Page 11 and 12: Capital Budgeting • When evaluati
Page 13 and 14: Capital Budgeting • Cash Flows: -
Page 15 and 16: Capital Budgeting • Discounted Ca
Page 17 and 18: Discounted Cash Flow - Net Present
Page 25: Discounted Cash Flow - Net Present
Page 39 and 40: Discounted Cash Flow - (IRR) IRR DC
Page 41: About the presenter • Michel has

CapitalBudgeting_201.. - CITT

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?