成本预算课程英文版.pptx

;Capital Budgeting;Long-Term (Capital) Assets;Need to Control Capital Assets;Meaning of Capital Budgeting;6;Types of Capital Budgeting Decisions;Investment and Return;Obviously, $1,000 today. Money received sooner rather than later allows one to use the funds for investment or consumption purposes. This concept is referred to as the TIME VALUE OF MONEY!!;Time Value of Money;Time Value of Money (1 of 2);Time Value of Money (2 of 2);Some Standard Notation;Types of Interest;Present Value;Assume that you need to have exactly $4,000 saved 10 years from now. How much must you deposit today in an account that pays 6% interest, compounded annually, so that you reach your goal of $4,000?; PV0 = FV / (1+i)10 = $4,000 / (1.06)10 = $2,233.58;Quick Check ?; How much would you have to put in the bank today to have $100 at the end of five years if the interest rate is 10%? a. $62.10 b. $56.70 c. $90.90 d. $51.90; PRESENT VALUE Year 5% 10% 15% 1 .952 .909 .870 2 .907 .826 .756 5 .784 .621 .497 10 .614 .386 .247 20 .377 .149 .061; PRESENT VALUE Year 5% 10% 15% 1 .952 .909 .870 2 .907 .826 .756 5 .784 .621 .497 10 .614 .386 .247 20 .377 .149 .061;Annuities;Examples of Annuities;Parts of an Annuity; PVAn = R (PVIFAi%,n) PVA3 = $1,000 (PVIFA7%,3) = $1,000 (2.624) = $2,624;Approaches to Capital Budgeting;;;Net Present Value (1 of 4);Cost of Capital;Net Present Value (2 of 4);Typical Cash Outflows;Typical Cash Inflows;General decision rule . . .;The Net Present Value (NPV) Criterion - Example;The Net Present Value (NPV) Criterion - Example;The Net Present Value (NPV) Criterion - Example;Quick Check Data;Quick Check ?; What is the net present value of the contract with the local bank? a. $150,000 b. $ 28,230 c. $ 92,340 d. $132,916;Comparison of Two Projects;Total Project Approach;Differential Approach;;Good Attributes of the NPV Rule;;Sounds good;Cash Control;Effect of Taxes;Effects of Depreciation Deductions;we show