TAILIEUCHUNG - Lecture Managerial accounting: Creating value in a dynamic business environment (9/e): Chapter 16 - Ronald W. Hilton

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 Discounted-Cash-Flow Analysis Cost reduction Plant expansion Equipment selection Lease or buy Equipment replacement Learning Objective 1 Net-Present-Value Method Prepare a table showing cash flows for each year, Calculate the present value of each cash flow using a discount rate, Compute net present value, If the net present value (NPV) is positive, accept the investment proposal. Otherwise, reject it. Net-Present-Value Method Mattson Co. has been offered a five year contract to provide component parts for a large manufacturer. Net-Present-Value Method At the end of five years the working capital will be released and may be used elsewhere by Mattson. Mattson uses a discount rate of 10%. Should the contract be accepted? Net-Present-Value Method Annual net cash inflows from operations Net-Present-Value Method Mattson should accept the contract because the present value of the cash inflows exceeds the present value of the cash outflows by .

• Kế toán - Kiểm toán
• Managerial accounting
• Lecture Managerial accounting
• Kế toán quản trị
• Financial accounting
• Dynamic business environment
• Capital expenditure decisions
• Managerial accounting for managers
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost