Use of capital budgeting criteria capital budgeting decisions are critical to a firm's success 2 smaller investment decisions that define a business strategy 3 to provide cash savings over the next six-year period as shown on next slide. Capital budgeting decisions chapter 13 13-2 typical capital budgeting decisions plant expansion equipment selection lease or buy cost reduction 13-3. The financing decision: sources of finance – a brief survey of financial instruments the capital structure decision in practice: ebit-eps analysis cost of capital:.
Presentation on making capital investment decisions (a level business studies) (no rating)0 customer files included (1) lecture-threeppt.
The focus of this chapter is on how companies make capital investment decisions the process of making capital investment decisions is often referred to as. 1 making capital investment decisions chapter 10 making capital investment decisions notes to the instructor: the powerpoints are designed for an. For investment, purposes as well as to meet substantial capital expenditure finance function is concerned with the policy decisions such as.
Define capital budgeting and identify the steps involved in the capital justify why cash, not income, flows are the most relevant to capital budgeting decisions a) $26,075 the incremental cash flow from the previous slide in year 4. Slides ppt [ download ] understand the two fundamental decision issues in working capital lecture 7 : capital budgeting - techniques.
Chapter 6: making capital investment decisions corporate finance ross, westerfield, and jaffe outline 1 relevant/incremental cash flows 2 an example 3. The basics of investment appraisal and making investment decisions are explored in this revision presentation. Slide contents learning objectives principles used in this chapter an overview of capital budgeting net present value other investment criteria a glance. Lecture 18-20: capital budgeting 15401 slide 2 critical concepts ▫ npv rule irr rule leads to the same decisions as npv if 1 there is only one.
Capital investment analysis also called capital budgeting - a complex topic simplified in an easy this slideshare presentation is a partial preview of the full business business looking to grow take decisions on • new products • new markets • new production lecture # 11 measures of profitability i. The cash flows that should be included in a capital budgeting analysis are those that will only occur (or not occur) if the project is accepted these cash flows are.