FIB01AY10201_Chap006财务管理.ppt

Cheapskate EAC with a Calculator 5 –500 –2,895.39 –1,000 CF1 F1 CF0 I NPV 10 763.80 10 -2,895.39 5 PMT I/Y FV PV N PV Quick Quiz How do we determine if cash flows are relevant to the capital budgeting decision? What are the different methods for computing operating cash flow, and when are they important? How should cash flows and discount rates be matched when inflation is present? What is equivalent annual cost, and when should it be used? * * * * * * I heard a story about an undergrad at the University of Missouri-Rolla. A student named Louis abandoned college three credit hours shy of grad