Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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Transcript of Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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8/14/2019 Class 5 (Ch. 10,11-Advanced Capital Budgeting)
1/54
Professor Jawad M. Addoum FIN303: Spring 20
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Advanced Capital
Budgeting
9%3:%342. ;,-4-#,4& 84-4
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8/14/2019 Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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Professor Jawad M. Addoum FIN303: Spring 20
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8/14/2019 Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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Professor Jawad M. Addoum FIN303: Spring 20
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8/14/2019 Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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Professor Jawad M. Addoum FIN303: Spring 20
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;%3 :4+2M(*2*3. 3.(.3.-#.E T. #4- 4&+% T3,2.C
9;/X+ ] b B b_9 c = b 9KJ! b XK c XW c "[XJ"[)K
] b B b_9 c EBIT(1 T) + D c "[XJ"[)K
T$.3. d)BX ] =.6.-*. b 9%+2 b W.:3.#,42,%-
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8/14/2019 Class 5 (Ch. 10,11-Advanced Capital Budgeting)
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Professor Jawad M. Addoum FIN303: Spring 20
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Example:X$. "e9e f%$-+%- _4^ 9%1:4-7 ,+ #%-+,0.3,-< 4-.T (&%%3 T4^ :3%0*#2 /- ,-,2,4& #4:,24& %*2&47 %( gOEAAAEAAA ,+ 3.U*,3.0 (%3 .U*,:1.-2
gIAAEAAA (%3 400,2,%-4& T%3V,-< #4:,24& 2% +*::%32 :3%0*#2,%- 4-0143V.2,- V&3O(@
B 20,000 3,600 1.180 20,000
E 30,000 4,000 1.133 50,000
A 10,000 1,100 1.110 60,000
D 15,000 1,600 1.107 75,000
F 40,000 4,200 1.105 115,000
G 25,000 1,400 1.056 140,000
C 20,000 800 1.040 160,000
The answer is choose: B, E, A, D, & F
X$.3. 43. &,1,242,%-+ $%T.6.3ke Simple Example:
/ (,31 $4+ g!8 exactly4-0 2T% :3%S.#2+
?3%S.#2 ! #%+2+ S*+2 g!AA 4-0 $4+ 4- \?m %( g!AA ,1:&7,-