TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 7: Investment analysis

After studying this chapter you will be able to understand: Net present value – basic considerations, discounted cash flows, cash money in - cash money out, incremental cash flows, inflation effects, tax effect on cash flows, opportunity cash flows, working capital changes impact, inflation, entire life of investment, tax depreciation shield (tax effect). | Investment Analysis Lecture: 7 Course Code: MBF702 Outline RECAP NET PRESENT VALUE – Basic considerations DISCOUNTED CASH FLOWS CASH MONEY IN - CASH MONEY OUT INCREMENTAL CASH FLOWS INFLATION EFFECTS TAX EFFECT ON CASH FLOWS OPPORTUNITY CASH FLOWS WORKING CAPITAL CHANGES IMPACT INFLATION ENTIRE LIFE OF INVESTMENT TAX DEPRECIATION SHIELD (TAX EFFECT) RECAP INVESTMENT Definition Capital or revenue Investment opportunities Evaluation methods of investments ACCOUNTING RATE OF RETURN (ROCE, ROI, SRR) (Estimated total or average profits/ estimated initial total or average investment) * 100 Present value factor of rs 1 at i% (pv = 1 / (1+i)^n PAYBACK METHOD TIME VALUE OF MONEY (FV=PV (1+i)^n and PV = FV ( 1 / (1+i)^n) ANNUITY NET PRESENT VALUE - Introduction Three Step NPV Method - RECAP Draw a sketch of the RELEVANT cash inflows and outflows 2. Convert the inflows and outflows into present value figures using tables or a calculator (using given rate of return) 3. Sum the present value .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks