TAILIEUCHUNG - Lecture Business finance - Chapter 6: The application of project evaluation methods

Chapter 6 - The application of project evaluation methods. After studying this chapter you will be able to: Explain the principles used in estimating project cash flows, compare mutually exclusive projects that have different lives, determine when to retire (abandon) or replace assets,. | Chapter 6 The Application of Project Evaluation Methods 2 2 2 2 2 2 Learning Objectives Explain the principles used in estimating project cash flows. Compare mutually exclusive projects that have different lives. Determine when to retire (abandon) or replace assets. 2 2 2 2 2 2 Learning Objectives (cont.) Use sensitivity analysis and break-even analysis to analyse project risk. Use decision trees to analyse sequential decisions. Explain the role of qualitative factors in project selection. Explain the effects of resource constraints on project selection. 3 3 3 3 3 3 Introduction Practical project evaluation has to accommodate: Uncertainty with respect to the cash flows. Uncertainty with respect to the estimation of the project’s required rate of return. The existence and implications of taxes. 4 4 4 4 4 4 Application of the Net Present Value Method Estimation of cash flows in project evaluation Exclude financing charges The required rate of return used to discount cash flows .

• Tài chính doanh nghiệp
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Project evaluation methods
• Estimating project cash flows
• 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
• Portfolio theory
• Aasset pricing
• Financial intermediaries
• Sources of short term debt