TAILIEUCHUNG - Lecture Managerial accounting: Creating value in a dynamic business environment (10th edition): 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 .

• Kế toán - Kiểm toán
• Managerial accounting
• Kế toán quản trị
• Dynamic business environment
• Cost management
• Financial accounting
• Total cost approach
• Managerial accounting for managers
• Lecture Managerial accounting
• 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