MultinationalFinancialManagement（跨国公司财务管理）ch17MultinationalCorporationsandCapitalBudgeting教学教材演示幻灯片.pptVIP

CHAPTER 17 Multinational Corporations and Capital Budgeting BASICS OF CAPITAL BUDGETING I. BASICS OF CAPITAL BUDGETING A. Basic Criterion: Net Present Value B. Net Present Value Technique: 1. Definition The present value of future cash flows, discounted at the project’s cost of capital less the initial net cash outlay. BASICS OF CAPITAL BUDGETING 2. NPV Formula: where I0 = initial cash outlay xt= net cash flow at t k = cost of capital n = investment horizon BASICS OF CAPITAL BUDGETING 3. Most important property of NPV technique: