《金融学教学》bodie2echapter06PPT课件.ppt

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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Chapter 6:  The Analysis of Investment Projects
Objective
Explain Capital Budgeting
Develop Criteria
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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Objectives
To show how to use discounted cash flow analysis to make decisions for business firms such as:
Whether to enter a new line of business
Whether to invest in equipment to reduce costs
Recall chapter 1, the process of analyzing such decisions is called capital budgeting.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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Three Elements of Capital Budgeting
coming up with proposals for investment projects
evaluating them
deciding which ones to accept and which to reject
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The criteria of capital budgeting
Recall the objective of a firm
Maximization of the market value of shareholders’ equity
The theory of how to do this was provided in the prior two pute present value of the project’s expected cash flows, and undertake only those with positive NPV
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Chapter 6 Contents
The Nature of Project Analysis
Where do Investment e from?
Present Value Investment Rule
Estimating a Project’s Cash Flows
Cost of Capital
Sensitivity Analysis Using Spreadsheets
Analyzing Cost-Reducing Projects
Projects with Different Lives
Ranking Mutually Exclusive Projects
Inflation & Capital Budgeting
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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The Nature of Project Analysis
Basic unit of analysis
the individual investment project
Procedural Outline
Form ideas on how to increase shareholders’ equity
Plan how to implement the ideas
Gather information on timing and magnitude of costs and benefits
Apply NPV criterion
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall
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