TAILIEUCHUNG - The Fast Forward MBA in Finance_11

Tham khảo tài liệu 'the fast forward mba in finance_11', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | CAPITAL INVESTMENT ANALYSIS time value of money and cost CONCEPT OF CAPITAL The pivotal idea in this and the previous chapter is the time value of money. This term refers not only to money but also more broadly to capital and economic wealth in general. Capital should generate income gain or profit over the time it is used. The ratio of earnings on the capital invested over a period of time one year being the standard time period of reference is the measure for the time value of money. Karl Marx said that capital is dead labor and argued that capital should be publicly owned for the good of everyone. I won t pursue this economic philosophy any further. Quite clearly in our economic system capital does have a time value or a time cost depending on whose shoes you re standing in. The business example in Chapter 14 has the following capital structure and cost-of-capital factors Capital Structure and Cost-of-Capital Factors ỹ 35 percent debt and 65 percent equity mix of capital sources percent annual interest rate on debt 40 percent income tax rate combined federal and state percent annual ROE objective The same business example is continued this chapter. The debt and equity mix and the cost-of-capital factors differ from business to business of course. But for a large swath of businesses this scenario is in the middle of the fairway. Chapter 14 focuses on a decision of a retailer regarding investing in cash registers that would generate labor cost savings in the future. The analysis reveals that 160 000 annual returns from the cash registers investment wouldn t be enough to justify the investment the annual returns would have to be 172 463. Figures and illustrate these important points. Assuming that annual returns of 172 463 could be earned for five years by using the cash registers the present value of the investment would be exactly 500 000. The entry cost of the investment is 500 000 this is the initial amount of capital that would be invested .

TỪ KHÓA LIÊN QUAN
Đã phát hiện trình chặn quảng cáo AdBlock
Trang web này phụ thuộc vào doanh thu từ số lần hiển thị quảng cáo để tồn tại. Vui lòng tắt trình chặn quảng cáo của bạn hoặc tạm dừng tính năng chặn quảng cáo cho trang web này.