ISE2014_Class23

ISE2014_Class23 - Class 23 ATCF ISE 2014 Click to edit...

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Click to edit Master subtitle style Class 23 - ATCF ISE 2014 Fall 2010
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Today’s Goal Demonstrate the process of setting up an ATCF table Use the table to calculate EW of the ATCF Work some example problems from the book
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Setting Up the Table Page 328 in your text shows the format for our ATCF tables I would recommend that you fill in each column, starting from the left, completely before moving to the next column Let’s go through each column and then work a simple example
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Column 1 – Year k This is just our column representing the each year of the asset’s useful life We’ll list years 1-k, where k is the useful life Each year represents EOY as with all previous analysis in the class
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Column 2 - BTCF This is our before tax cash flows They will be revenue – expenses for each year Previously in chapters 5 and 6 we would find the EW of these cash flows Now these are our starting points to calculate ATCF
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Column 3 - Depreciation This column will be the depreciation in each year This would be represented as dk in our
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ISE2014_Class23 - Class 23 ATCF ISE 2014 Click to edit...

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