PPT-CH 9 NET PRESENT VALUE AND OTHER INVESTMENT CRETERIA

The goal of financial management is to maximize the value of stockholders Capital Budgeting has to answer question What long term investments the firm should take Any firm has a verity of possible investments Some of them are valuable and some are not The main job of financial management is identifying which is which. CHAPTER . 15. Learning Objectives. After studying this chapter, you should be able to:. Explain the nature and importance of capital investment analysis. Evaluate capital investment proposals using the average rate of return and cash payback methods. Planning for Capital Investments. © 2015 McGraw-Hill Education.. Capital Investment Decisions. Purchases of long-term operational assets are . capital investments. . Once a company purchases operational assets, it is committed to these investments for an extended period of time. Understanding the time value of money concept will help you make rational capital investment decisions.. CHAPTER 9. The difference between the market value of a project and its cost. Estimating NPV: (DCF). The first step is to estimate the expected future cash flows.. The second step is to estimate the required return for projects of this risk level.. The time value of money. CH 5. I. ntroduction. One of the basic problems faced by the financial manager is how to determine the value . today. of cash flow expected in the . future. .. Time value of money: is refer to the fact that a dollar in hand today is worth more than a dollar promised at some time in the future. The reason for this is that you could earn interest while you waited; so a dollar today would grow to more than a dollar later.. the . Capital Market, . and the Wealth of Nations. Why People Invest. Capital and Investment. Types of . capital. :. physical capital. human capital. Investment. : . the purchase . or development of a capital resource. The time value of money. CH 5. I. ntroduction. One of the basic problems faced by the financial manager is how to determine the value . today. of cash flow expected in the . future. .. Time value of money: is refer to the fact that a dollar in hand today is worth more than a dollar promised at some time in the future. The reason for this is that you could earn interest while you waited; so a dollar today would grow to more than a dollar later.. Chapter 21. 1. Learning Objectives. 2. Describe the importance of capital investments and the capital budgeting process. Use the payback period and rate of return methods to make capital investment decisions. Paul Dietmann, Emerging Markets Specialist. Badgerland. Financial. But Local, Buy Wisconsin Webinar. March 14, 2013. 2. To get a copy of this presentation, go to badgerlandfinancial.com and click on “Conference Presentations”. Email irenelai360gmailcom AddressEvanstonILEDUCATIONNorthwestern University EvanstonIllinois September 2019 December2020Master of Science in Analyt and the Wealth of Nations. Why People Invest. Capital and Investment. Types of . capital. :. physical capital. human capital. Investment. : . the purchase . or development of a capital resource. Savings. Upon completion of this session, participants will be able to:. Explain the role of capital budgeting in long-range planning. Understand the concept of cash flow analysis. Understand the difference between simple and discounted cash flow analysis. Chapter 13. Typical Capital Budgeting Decisions. Plant expansion. Equipment selection. Equipment replacement. Lease or buy. Cost reduction. Typical Capital Budgeting Decisions. Capital budgeting tends to fall into two broad categories.. and the Wealth of Nations. Why People Invest. Capital and Investment. Types of . capital. :. physical capital. human capital. Investment. : . the purchase . or development of a capital resource. Savings. CH . 9. The goal of financial management. is to maximize the value of . stockholders.. Capital Budgeting: has to answer . question: What . long- term investments the firm should take? . Any . firm has a verity of possible investments. Some of them...