TAILIEUCHUNG - Lecture Managerial accounting: Creating value in a dynamic business environment (10/e): Chapter 16 - Ronald W. Hilton, David E. Platt

Chapter 16, capital expenditure decisions. After completing this chapter, you should be able to: Use the net-present-value method and the internal-rate-of-return method to evaluate an investment proposal; compare the net-present-value and internal-rate-of-return methods, and state the assumptions underlying each method; use both the total-cost approach and the incremental-cost approach to evaluate an investment proposal. | Capital Expenditure Decisions Chapter 16 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 16: Capital Expenditure Decisions Net-Present-Value Method 1. Prepare a table showing cash flows for each year, 2. Calculate the present value of each cash flow using a discount rate, 3. Compute net present value, 4. If the net present value (NPV) is zero or positive, accept the investment proposal. Otherwise, reject it. 16- These four steps constitute a net-present-value analysis of an investment proposal: 1. Prepare a table showing the cash flows during each year of the proposed investment. 2. Compute the present value of each cash flow, using a discount rate that reflects the cost of acquiring investment capital. This discount rate is often called the hurdle rate or minimum desired rate of return. 3. Compute the net present value, which is the sum of the present values of the .

• Tài chính doanh nghiệp
• Capital expenditure decisions
• Managerial accounting
• Dynamic business environment
• Cost management
• Financial accounting
• Total cost approach
• Lecture Managerial accounting
• Capital budgeting
• Elements of discount rate
• Nominal interest rate
• Management accounting
• Lecture Management accounting
• Managing resources
• Analysing capital expenditure proposals
• Internal rate of return
• Management accounting information
• Managing value
• Capital expenditure approval process
• Capital expenditure analysis
• Support activity costs
• Joint costs
• Target costing
• Cost analysis for pricing decisions
• Investment centers
• Financial Statements
• Capital Expenditure
• Business Decisions
• Information Technology
• Business Valuation
• Fundamental concepts
• Measuring product costs
• Activity based management
• Financial modeling
• A dynamic business environment
• Flexible budgeting
• Transfer pricing
• Kế toán quản trị
• Costing systems