'Npv decision rule' presentation slideshows

Lecture 6: Capital Budgeting Part 1

Lecture 6: Capital Budgeting Part 1. C. L. Mattoli. This week. In the book, chapter 8. Intro. In the beginning of the course, we looked at the 3 main decisions that financial managers of a company need to make: capital structure, capital budgeting, and WC management.

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Capital Budgeting Decision Methods

Capital Budgeting Decision Methods. Chapter 10. Oct 31, 2012. 1. Learning Objectives. The capital budgeting process. Calculation of Payback, NPV, IRR Capital rationing. Measurement of risk in capital budgeting and how to deal with it. 2. Overview. Time Value of Money

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Chapter

Chapter. 8. Net Present Value and Other Investment Criteria. Key Concepts and Skills. Understand the payback rule and its shortcomings Understand accounting rates of return and their problems Understand the internal rate of return and its strengths and weaknesses

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Chapter

Chapter. 8. Net Present Value and Other Investment Criteria. Key Concepts and Skills. Understand the payback rule and its shortcomings Understand accounting rates of return and their problems Understand the internal rate of return and its strengths and weaknesses

483 views • 39 slides

Financial Analysis Module

Financial Analysis Module. Financial Analysis. is concerned with determining the income that the project would generate for the project-operating entity ; and if there is no income, how to finance and sustain its operation (i.e., water supply and road projects). Economic Analysis.

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Calculate the payback period, discounted payback period, and net present value for this project.

Calculate the payback period, discounted payback period, and net present value for this project. Which project would you choose for the PB and DPB? If the company applies the NPV decision rule which problem will you choose? Explain why your answers are different.

211 views • 2 slides