英文版公司理财课件.ppt

COPYRIGHT?ZHULI Using discounted cash-flow analysis to make investment decisions Objectives Identify the cash flows properly attributable to a proposed new project Calculate the cash flows of a project from standard financial statements Understand how the company’s tax bill is affected by depreciation and how this affects project value Understand how changes in working capital affect project cash flows Content Identifying cash flows Calculating cash flow An example: Blooper industries we have been concerned mainly with the mechanics of discounting and with the various methods of project appraisal. We have glossed over the problem of deciding what to discount. When you are faced with this problem, you should always stick to three general rules: 1. Only cash flow is relevant. 2. Always estimate cash flows on an incremental basis. 3. Be consistent in your treatment of inflation. When calculating NPV, recognize investment expenditures when they occur, not later when they show up as depreciation. Projects are financially attractive because of the cash they generate, either for distribution to shareholders or for reinvestment in the firm. Therefore, the focus of capital budgeting must be on cash flow, not profits to obtain accounting income accountants adjust inputs in two important ways. First, they try to show profit as it is earned rather than when the company and the customer get around to paying their bills. Second, they sort cash outflows into two categories: current expenses and capital expenses. They deduct current expenses when calculating profit but do not deduct capital expenses. Instead they depreciate capital expenses over a number of years and deduct the annual depreciation charge from profits. As a result of these procedures, profits include some cash flows and exclude others, and they are reduced by depreciation charges, which are not cash flows at all. Include all indirect effects Forget sunk costs: sunk costs remain the same whether or not