- 1、本文档共19页,可阅读全部内容。
- 2、原创力文档(book118)网站文档一经付费(服务费),不意味着购买了该文档的版权,仅供个人/单位学习、研究之用,不得用于商业用途,未经授权,严禁复制、发行、汇编、翻译或者网络传播等,侵权必究。
- 3、本站所有内容均由合作方或网友上传,本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺!文档内容仅供研究参考,付费前请自行鉴别。如您付费,意味着您自己接受本站规则且自行承担风险,本站不退款、不进行额外附加服务;查看《如何避免下载的几个坑》。如果您已付费下载过本站文档,您可以点击 这里二次下载。
- 4、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等,请点击“版权申诉”(推荐),也可以打举报电话:400-050-0827(电话支持时间:9:00-18:30)。
查看更多
* * * * * * * * * * * * * * Chapter 5 * Accepting positive NPV projects benefits shareholders. NPV uses cash flows NPV uses all the cash flows of the project NPV discounts the cash flows properly * Net Present Value (NPV) = Total PV of future CF’s + Initial Investment Estimating NPV: 1. Estimate future cash flows: how much? and when? 2. Estimate discount rate 3. Estimate initial costs Accept / reject: Accept NPV 0 Ranking Criteria: Choose the highest NPV * How long does it take the project to “pay back” its initial investment? Payback Period = number of years to recover initial costs Minimum Acceptance Criteria: Set by management Ranking Criteria: Set by management * Disadvantages: Ignores the time value of money Ignores cash flows after the payback period Biased against long-term projects Requires an arbitrary acceptance criteria A project accepted based on the payback criteria may not have a positive NPV Advantages: Easy to understand Biased toward liquidity * IRR: the discount rate that sets NPV to zero Minimum Acceptance Criteria: Accept if the IRR exceeds the required return Ranking Criteria: Select alternative with the highest IRR Reinvestment assumption: All future cash flows are assumed to be reinvested at the IRR * Disadvantages: Does not distinguish between investing and borrowing IRR may not exist, or there may be multiple IRRs Problems with mutually exclusive investments Advantages: Easy to understand and communicate * Consider the following project: 0 1 2 3 $50 $100 $150 -$200 The internal rate of return for this project is 19.44% * If we graph NPV versus the discount rate, we can see the IRR as the x-axis intercept. IRR = 19.44% * Multiple IRRs Are We Borrowing or Lending The Scale Problem The Timing Problem * Mutually Exclusive Projects: Independent Projects: * 0 1 2 3 $200 $800 -$200 - $800 * Would you rather make 100% or 50% on your investments? * 0 1 2 3 $10,000 $1,0
您可能关注的文档
- ablc ase note ofMISLEADING教程.pdf
- Advertisements in Newspapers教程.ppt
- An analysis of ERP annual report disclosures教程.pdf
- Auditor compensation, disclosure quality,教程.pdf
- Auxin and the developing root of Arabidopsis thaliana_教程.pdf
- 01 introduction to microsystems packaging教程.pdf
- Board independence, internal information environment教程.pdf
- 02 the role of packaging in microelectronics教程.pdf
- 03 the role of packaging in microsystems教程.pdf
- Book 5_U1_Grammar and usage 1教程.ppt
- 2024年5月山西晋中市介休市事业单位(含中小学校和公立医院)招考聘用133人笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
- 各类消防安全管理制度.docx
- 听生本课心得田君.docx
- 各项制度范本.docx
- 电气专业现行设计统一标准规范详细规定图集.pdf
- 2024年05月甘肃金昌市机关事务管理局公开招聘临聘驾驶员笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
- 2024年06月湖南省平江县人民政府办公室2024年公开遴选6名机关工作人员笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
- 2024年06月广西玉林市法院2024年招考25名编制外工作人员(含聘用制书记员)笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
- 2024年06月广西中共南宁市青秀区委宣传部公开招聘8人笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
- 2024年05月浙江省武义县人力社保局所属事业单位2024年招考2名事业编制工作人员笔试历年高频考点(难、易错点荟萃)附带答案详解.docx
最近下载
- 1080《工程数学》国家开放大学期末考试题库(最新)[笔试+机考+一网一].pdf
- 浅谈大数据与会计.docx VIP
- 熊猫债券发行流程-概述说明以及解释.pdf
- BP5001D系统应用指南 20220805 晶丰明源LED电源.pdf
- 北京 2023年地面气象测报上岗考试地面气象观测远程培训考试真题模拟汇编(共936题).doc VIP
- BP3167XJ_EN_DS_Rev_1.2 规格书 晶丰明源LED电源.pdf
- 儿童心理健康评估量表.docx
- 第一批下载史陶比尔机器人.docx
- 23年秋七年级劳动技术 教案第三单元 农业生产劳动阳台种植小白菜苏凤凰出版社.docx VIP
- BP5929_CN_DS_Rev_1.1 规格书 晶丰明源LED电源.pdf
文档评论(0)