CHAPTER 21. CAPITAL BUDGETING DECISIONS. Plant expansion. Equipment replacement. Equipment selection. Lease or buy. Cost reduction. Typical Capital Budgeting Decisions. Typical Capital Budgeting Decisions. Capital budgeting tends to fall into two broad categories . . .

ByTaxes and Depreciation Extra Problems. P=$15,000, Depr. is SOYD, Tax % = 50%. a. Compute the before and after tax cash flows for this company associated with this project. b. Show the equations that must be solved to determine the after tax NPW and ROR.

ByCapital Budgeting: To Invest or Not To Invest. Capital Budgeting Decision usually involves long-term and high initial cost projects. Invest if a project’s “value” >= “cost”. Estimating initial costs Estimating “value” Estimate future cash flows: timing (when?) size (how much?)

ByChapter Seven. 7. Net Present Value and Capital Budgeting. Corporate Finance Ross Westerfield Jaffe. Sixth Edition. Prepared by Gady Jacoby University of Manitoba and Sebouh Aintablian American University of Beirut. Chapter Outline. 7.1 Incremental Cash Flows

ByWrap-up of 15.402. The Big Picture: Part II - Valuation A. Valuation: Free Cash Flow and Risk ‧ April 1 Lecture: Valuation of Free Cash Flows ‧ April 3 Case: Ameritrade B. Valuation: WACC and APV ‧ April 8 Lecture: WACC and APV I ‧ April 10 Lecture: WACC and APV 2

ByPRODUCT DEVELOPMENT “ Creating Value Internally”. TYPES OF CAPITAL EXPENDITURES. PURCHASE NEW EQUIPMENT REPLACE EXISTING ASSETS INVESTMENTS IN WORKING CAPITAL MERGER AND ACQUISITION ANALYSIS. THE CAPITAL BUDGETING PROCESS. GENERATE PROJECT PROPOSALS ESTIMATE CASH FLOWS

ByRelevant Cash Flows and Other Topics in Capital Budgeting. Timothy R. Mayes, Ph.D. FIN 3300: Chapter 10. Project Cash Flows. When deciding whether or not to make an investment, we must first estimate the cash flows that the investment will provide

ByCHAPTER 8. CAPITAL BUDGETING. Objectives. At the end of the chapter, you should be able to; Understand the importance of the capital budgeting decision Understand why only cash flows matter Define the types of investment projects Apply the methods used to evaluate capital projects

ByIncome Taxes and Capital Budgeting. Cash flows from an investment proposal affect the company’s profit and its income tax liability. Income = Revenue - Expenses + Gains - Losses. After-Tax Cash Flows. The tax rate is 28%, so income taxes are $525,000 × 28% = $147,000.

By16. Chapter Sixteen. Capital Expenditure Decisions. Learning Objective 1. Discounted-Cash-Flow Analysis. Plant expansion. Equipment selection. Equipment replacement. Cost reduction. Lease or buy. Net-Present-Value Method. Prepare a table showing cash flows for each year,

ByCost Accounting Foundations and Evolutions Kinney, Prather, Raiborn. Chapter 14 Capital Budgeting. Learning Objectives (1 of 3). Explain why most capital budgeting methods focus on cash flows Compute and describe what is measured by the payback period

ByMultinational Capital Budgeting. Capital Budgeting in Foreign Subsidiaries. MNCs evaluate international projects by using multinational capital budgeting, which compares the costs and benefits of these projects.

ByINTERNATIONAL FINANCIAL MANAGEMENT. Fourth Edition. EUN / RESNICK. 18. International Capital Budgeting. Chapter Eighteen. Chapter Objective: This chapter discusses the methodology that a multinational firm can use to analyze the investment of capital in a foreign country. INTERNATIONAL

ByCorporate Finance Review for Quiz 2. Aswath Damodaran. Basic Skills Tested. Can you compute the cost of capital for a project (rather than a firm)? How do you estimate the cost of equity for a project? What debt ratio should you use for a project?

ByPrinciples of Corporate Finance Seventh Edition Richard A. Brealey Stewart C. Myers. Chapter 6. Making Investment Decisions with the Net Present Value Rule. McGraw Hill/Irwin. Topics Covered. What To Discount IM&C Project Project Analysis. What To Discount. Only Cash Flow is Relevant.

ByChapter 16. Capital Expenditure Decisions. Learning Objective 1. Discounted-Cash-Flow Analysis. Plant expansion. Equipment selection. Equipment replacement. Cost reduction. Lease or buy. Net-Present-Value Method. Prepare a table showing cash flows for each year,

ByCost Accounting Foundations and Evolutions Kinney, Prather, Raiborn. Chapter 14 Capital Budgeting. Learning Objectives (1 of 3). Explain why most capital budgeting methods focus on cash flows Compute and describe what is measured by the payback period

ByView Tax cash flows PowerPoint (PPT) presentations online in SlideServe. SlideServe has a very huge collection of Tax cash flows PowerPoint presentations. You can view or download Tax cash flows presentations for your school assignment or business presentation. Browse for the presentations on every topic that you want.