第七章 净现值和资本预算.pdf

7-0 Chapter Outline 7.1 Incremental Cash Flows 7.2 The Baldwin Company: An Example 7.3 Inflation and Capital Budgeting 7.4 Investments of Unequal Lives: The Equivalent Annual Cost Method 7.5 Summary and Conclusions McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 7-1 7.1 Incremental Cash Flows • Cash flows matter—not accounting earnings. • Sunk costs don’t matter. • Incremental cash flows matter. • Opportunity costs matter. • Side effects like cannibalism and erosion matter. • Taxes matter: we want incremental after-tax cash flows. • Inflation matters. McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 7-2 Cash Flows—Not Accounting Earnings. • Consider depreciation expense. • You never write a check made out to “depreciation”. • Much of the work in evaluating a project lies in taking accounting numbers and generating cash flows. McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 7-3 Cash Flows—Not Accounting Earnings. • Consider depreciation expense. • You never write a check made out to “depreciation”. • Much of the work in evaluating a project lies in taking accounting numbers and generating cash flows. McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 7-4 中国管理网 中国最大的企业管理资源中心 Incremental Cash Flows • Sunk costs are not relevant – Just because “we have come this far” does not mean that we should continue to throw good mone