公司理财第8章.pdf

Chapter8:Strategy andAnalysisinUsingNet PresentValue Concept Questions-Chapter8 8.1 What arethewaysafirmcancreatepositiveNPV. 1. Be firsttointroduceanewproduct. 2. Further develop acorecompetencytoproduct goodsor servicesat lower costs than competitors. 3. Createabarrier thatmakesit difficult fortheother firmstocompete effectively. 4. Introducevariation on existingproductstotakeadvantageofunsatisfied demand 5. Createproduct differentiationby aggressiveadvertisingandmarketing networks. 6. Useinnovation in organizationalprocessestodoalloftheabove.  How canmanagersusethemarkettohelpthem screenout negativeNPV projects? 8.2  Whatisadecisiontree? It isamethodtohelp capitalbudgetingdecision-makersevaluatingprojects involving sequential decisions. At everypoint inthetree,therearedifferent alternativesthat shouldbeanalyzed.  What arepotentialproblemsinusingadecisiontree? Potentialproblems 1)that adifferent discountrate shouldbeusedfor different branchesinthetreeand2)it isdifficult for decisiontreestocapturemanagerial options. 8.3  Whatisasensitivity analysis? It isatechniqueusedtodeterminehowtheresult ofadecision changeswhen someoftheparametersor assumptionschange.  Whyisitimportanttoperformasensitivity analysis? Becauseitprovidesan analysisoftheconsequencesofpossibleprediction or assumption errors.  Whatisabreak-even analysis? It isatechniqueusedtodeterminethevolumeofproductionnecessary tobreak even,that is,tocovernot onlyvariablecostsbut fixedcostsaswell.  Describehow sensitivity analysisinteractswithbreak-even analysis. Sensitivity analysiscan determinehowthefinancialbreak-evenpoint changes when somefactors(such asfixedcosts,variablecosts,orrevenue) change. AnswerstoEnd-