Corporate financial managers continually invest funds in assets, and these assets produce income and cash flows that the firm can then either reinvest in more assets or distribute to the owners
of the firm. Capital investment refers to the firm’s investment in assets, and these investments may be either short term or long term in nature. Capital budgeting decisions involve the long-term commitment
of a firm’s scarce resources in capital investments. When such a decision is made, the firm is committed to a current and possibly future outlay of funds....
Chapter 1 introduces the concept of capital budgeting, and sets out the structure of the book.
The important points are:
Capital budgeting is the most significant financial activity of the firm.
Capital budgeting determines the core activities of the firm over a long term future.
Capital budgeting decisions must be made carefully and rationally.
Bài giảng Chapter 10: The Basics of Capital Budgeting: Evaluating Cash Flows provides about Overview and “vocabulary”, Methods (Payback, discounted payback; NPV; IRR, MIRR; Profitability Index), Unequal lives, Economic life.
The term capital budgeting is used to describe how managers plan significant cash outlays on projects that have long-term implications, such as the purchase of new equipment and the introduction of new products. This chapter describes several tools that can be used by managers to help make these types of investment decisions.
In this chapter: Compare the capital budgeting analysis of an MNC’s subsidiary versus its parent, demonstrate how multinational capital building can be applied to determine whether an international project should be implemented, show how multinational capital budgeting can be adapted to account for special situations such as alternative exchange rate scenarios or when subsidiary financing is considered, explain how the risk of international projects can be assessed.
After studying chapter 12, you should be able to: Define “capital budgeting” and identify the steps involved in the capital budgeting process, explain the procedure used to generate longterm project proposals within the firm, justify why cash, not income, flows are the most relevant to capital budgeting decisions,...
Once we have determined the relevant cash-flow information necessary to make capital budgeting decisions, we need to evaluate the attractiveness of the various investment proposals under consideration. The investment decision will be to either accept or reject each proposal. In this chapter we study alternative methods of project evaluation and selection.
Lecture Fundamental accounting principles - Chapter 25: Capital budgeting and managerial decisions. This chapter describe the importance of relevant costs for short-term decisions, evaluate short-term managerial decisions using relevant costs, analyze a capital investment project using break-even time, compute payback period and describe its use.
The goals of this chapter are: To discuss the characteristics and development of FDI, to outline the theories of FDI, to describe the techniques of international capital budgeting, to examine the implications of taxation, country risk and transfer prices for international capital budgeting.
(BQ) Part 1 book "Capital budgeting - Theory and practice pamela" has contents: The investment problem and capital budgeting, cash flow estimation, integrative examples and cash flow estimation in practice, payback and discounted payback period techniques,...and other contents.
(BQ) Part 2 book "Capital budgeting - Theory and practice pamela" has contents: Comparing evaluation techniques and some concluding thoughts, measurement of project risk, incorporating risk in the capital budgeting decision, valuing a lease, uncertainty and the lease valuation model, generalization of the lease valuation model.
Topic 7 - Global valuation and capital budgeting. In this chapter, students will be able to understand value foreign investments using sovereign risk premiums, foreign proxies, cashflow adjustments and exchange rate forecasts.
Lecture Multinational financial management - Topic 15: Global capital budgeting and country risk. In this chapter, students will be able to understand value foreign investments using sovereign risk premiums, foreign proxies, cashflow adjustments and exchange rate forecasts.
Lecture Fundamentals of financial management - Chapter 10: The basics of capital budgeting. This chapter presents the following content: What is capital budgeting? Steps to capital budgeting, What is the difference between independent and mutually exclusive projects? Calculating payback, strengths and weaknesses of payback,...
Lecture Fundamentals of financial management - Chapter 12: Other topics in capital budgeting. This chapter presents the following content: Evaluating projects with unequal lives, identifying embedded options, valuing real options in projects.
After studying chapter 14, you should be able to: Define the “riskiness” of a capital investment project; understand how cash-flow riskiness for a particular period is measured, including the concepts of expected value, standard deviation, and coefficient of variation; describe methods for assessing total project risk, including a probability approach and a simulation approach.
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This book explains the ﬁnancial appraisal of capital budgeting projects. The coverage extends from the development of basic concepts, principles and techniques to the application of them in increasingly complex and real-world situations. Identiﬁcation and estimation (including forecasting) of cash ﬂows, project appraisal formulae and the application of net present value (NPV), internal rate of return (IRR) and other project evaluation criteria are illustrated with a variety of calculation examples.
(BQ) Part 2 book "Managerial accounting" has contents: Master budgeting, standard costs and variances, flexible budgets and performance analysis, financial statement analysis, statement of cash flows, capital budgeting decisions, performance measurement in decentralized organizations,...and other contents.
(BQ) Part 2 book "Managerial accounting for managers" has contents: Capital budgeting decisions, profit planning, flexible budgets and performance analysis, profit planning, performance measurement in decentralized organizations, standard costs and variances,...and other contents.