chapter 12 notes

chapter 12 notes - BUS 320 Chapter 12 Notes 1 Cash Flows In...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 BUS 320 Chapter 12 Notes
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Cash Flows In the real world cash flows are just not provided, they must be estimated on information from various sources. Estimating Cash Flows can be difficult. Must undertake detailed PROJECT ANALYSIS
Background image of page 2
3 Project Analysis Input Data -assumptions. Some known with near certainty others more speculative. Depreciation Schedule Salvage Value Calculations Estimated cash flows when company disposes equip./building Projected Cash Flows -seeking cash flows not accounting income. Investment Outlays » Building » Equipment » Increase in working capital Operating Cash Flows over project’s life Terminal Year cash flows Appraisal of Proposed Project -using methods outlined in chapter 11.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 Other Points Cash flow not account income is what is relevant for this analysis. Must deal with cash flows exactly when they
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 14

chapter 12 notes - BUS 320 Chapter 12 Notes 1 Cash Flows In...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online