《财务管理》课程PPT教学课件（英文版）Chapter 10 Cash Flows and Other Topics in Capital Budgeting

Step 1: Evaluate Cash Flows a)Initial Outlay: What is the cash flow at “time0?” (Purchase price of the asset) +(shipping and installation costs) Depreciable asset) + (Investment in working capital) After-tax proceeds from sale of old asset Net Initial outlay

Step 1: Evaluate Cash Flows • a) Initial Outlay: What is the cash flow at “time 0?” (Purchase price of the asset) + (shipping and installation costs) (Depreciable asset) + (Investment in working capital) + After-tax proceeds from sale of old asset Net Initial Outlay

Step 1: Evaluate Cash Flows a)Initial Outlay: What is the cash flow at “time0?” (127,000 +(shipping and installation costs) Depreciable asset) + (Investment in working capital) After-tax proceeds from sale of old asset Net Initial outlay

Step 1: Evaluate Cash Flows • a) Initial Outlay: What is the cash flow at “time 0?” (127,000) + (shipping and installation costs) (Depreciable asset) + (Investment in working capital) + After-tax proceeds from sale of old asset Net Initial Outlay

Step 1: Evaluate Cash Flows a)Initial Outlay: What is the cash flow at “time0?” (127,000 +(20,000 Depreciable asset) + (Investment in working capital) After-tax proceeds from sale of old asset Net Initial outlay

Step 1: Evaluate Cash Flows • a) Initial Outlay: What is the cash flow at “time 0?” (127,000) + ( 20,000) (Depreciable asset) + (Investment in working capital) + After-tax proceeds from sale of old asset Net Initial Outlay

Step 1: Evaluate Cash Flows a)Initial Outlay: What is the cash flow at “time0?” (127,000 +(20,000 147,000) + (Investment in working capital) After-tax proceeds from sale of old asset Net Initial outlay

Step 1: Evaluate Cash Flows • a) Initial Outlay: What is the cash flow at “time 0?” (127,000) + ( 20,000) (147,000) + (Investment in working capital) + After-tax proceeds from sale of old asset Net Initial Outlay

Step 1: Evaluate Cash Flows a)Initial Outlay: What is the cash flow at “time0?” (127,000 +(20,000 (147,000 +(4,0000 t After-tax proceeds from sale of old asset Net Initial outlay

Step 1: Evaluate Cash Flows • a) Initial Outlay: What is the cash flow at “time 0?” (127,000) + ( 20,000) (147,000) + ( 4,000) + After-tax proceeds from sale of old asset Net Initial Outlay