公司理财(双语)npv培训教案.pptVIP

Topics Covered NPV and its Competitors The Payback Period The Average Accounting Return Internal Rate of Return Capital Rationing Good Decision Criteria We need to ask ourselves the following questions when evaluating capital budgeting decision rules: Does the decision rule adjust for the time value of money? Does the decision rule adjust for risk? Does the decision rule provide information on whether we are creating value for the firm? Net Present Value The difference between the market value of a project and its cost. Net Present Value (NPV) = ﹣Initial Investment + Total PV of future CF’s