《英文版公司理财课件chapter7.pptVIP

COPYRIGHT?ZHULI Chapter 7 Net present value and other investment criteria Objectives Calculate the net present value of an investment Calculate the internal rate of return of a project and know what to look out for when using the internal rate of return rule Explain why the payback rule doesn’t always make shareholders better off Use the net present value rule to analyze three common problems that involve competing projects: (a) when to postpone an investment expenditure, (b) how to choose between projects with unequal lives, and (c) when to replace equipment Calculate the profitability index