Chapter_07Net Present Value and Capital Budgeting(公司理财-四川大学,战松).pdf
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Chapter 7
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s Net Present Value and
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. Capital Budgeting
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7-0
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Chapter Outline
Project Cash Flows: A First Look
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Incremental Cash Flows
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Pro Forma Financial Statements and
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u Project Cash Flows
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. More on Project Cash Flow
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Alternative Definitions of Operating Cash
Flow
Some Special Cases of Cash Flow
Analysis
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Relevant Cash Flows
The cash flows that should be included in a
z capital budgeting analysis are those that
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g will only occur if the project is accepted
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c These cash flows are called incremental
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d cash flows
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n The stand-alone principle allows us to
analyze each project in isolation from the
firm simply by focusing on incremental
cash flows
7-2
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Asking the Right Question
You should always
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