高级投资项目管理与经济效益评价(英文版)(ppt 75页).ppt

高级投资项目管理与经济效益评价(英文版)(ppt 75页)
Advanced Topics in Capital Budgeting
I. What is Capital Budgeting?
Capital=Fixed Assets used in production/service; Budgeting=Plan detailing projected cash inflows and outflows during some future period, thus “Capital Budgeting” outlines the planned expenditures on fixed assets.
1. Multi-concepts for Capital Budgeting
(1) Capital Investment Analysis & Decision
(2) Economic Evaluation of Investment Projects
(3) Technological Economics
(4) Investment Feasibility Study
2. A Formal Definition of Capital Budgeting
Capital budgeting is a filed of finance concerned with cost and benefit, and return and risk derived from investment project undertaken by a firm.
The capital budgeting is a procedure include a set of systematic techniques dealing with how to evaluate and select investment projects under certainty or uncertainty.
厦门大学管理学院吴世农
Technological Macroeconomic
Feasibility Feasibility
Financial Implementation Operation
Feasibility

Social/Cultural Environmental
Feasibility Feasibility


Comprehensive Review Post-
Feasibility Report Assessment
Exhibit 1 (Continuos): Diagram Suggested for Investment Project’s Feasibility Study in Firms
Advanced Topics in Capital Budgeting
II. Conflicts between NPV and IRR for Mutually Exclusive Projects
1. Size Effect of Investment Outlay on NPV and IRR
(1) Conflict——Which Maximizes Shareholder’s Wealth?
Suppose that there are two projects, A and B, n=1, K=10%, their investment outlays and NCF are presented in the following table.
Project