TAILIEUCHUNG - Lecture Business finance - Chapter 5: Project evaluation: Principles and methods

Chapter 5 - Project evaluation: Principles and methods. This chapter explain the importance of each of the steps in the capital expenditure process, outline the decision rules for each of the main methods of project evaluation, explain the advantages and disadvantages of the main project evaluation methods,. | Chapter 5 Project Evaluation: Principles and Methods 1 1 1 1 1 1 1 1 1 1 Learning Objectives Explain the importance of each of the steps in the capital expenditure process. Outline the decision rules for each of the main methods of project evaluation. Explain the advantages and disadvantages of the main project evaluation methods. 2 2 2 2 2 2 2 2 2 2 Learning Objectives (cont.) Explain why the net present value method is preferred to all other methods. Understand the link between economic value added (EVA) and net present value (NPV). 2 2 2 2 2 2 2 2 2 2 Capital Expenditure Process The capital expenditure process involves: Generation of investment proposals. Evaluation and selection of those proposals. Approval and control of capital expenditures. Post-completion audit of investment projects. 3 4 4 5 5 5 5 5 5 4 Generation of Investment Proposals Investment ideas can range from simple upgrades of equipment, replacing inefficient exiting equipment, through to plant expansions, .

• Tài chính doanh nghiệp
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Project evaluation
• Capital expenditure process
• Sources of finance
• Leasing finance
• Sources of long term finance
• Long term finance
• Equipment finance
• Ordinary shares
• Long term debt
• Dividend Policy
• Capital structure
• Capital structure decisions
• Capital market efficiency
• Futures contracts
• Option markets
• Analysis of takeovers
• International financial management
• Management of short term assets
• Financial decisions
• Financial mathematics
• The time value of money
• Project evaluation methods
• Portfolio theory
• Aasset pricing
• Financial intermediaries
• Sources of short term debt