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Unformatted text preview: 1/2 7. Comparison of Alternatives a. Present Worth Comparison b. Annual Worth Comparison c. Break-even Analysis d. Sensitivity Analysis e. Unequal life – Common multiples f. Incremental Analysis g. Benefit/Cost Ratios h. Decision Trees i. Expected Value Criteria ii. Expected Value of Perfect Information 8. Life of an Asset a. Physical Life b. Economic Life c. Profit Life d. Accounting or Depreciation Life 9. Inflation a. What is this? b. How do we account for it? 10. Internal Rate of Return (IRR) a. What is this? b. Why would we (not) want to use it? c. Some Cash Flows have multiple IRR’s 11. Payback Period a. Simple interest b. We can account for the time value of money with a modification 12. Taxes a. What is considered taxable income? b. Depreciation allowances i. Depreciation is not a real cash flow ii. Straight Line Depreciation c. Book Value d. BTCF e. ATCF 2/2...
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- Fall '11
- Net Present Value, Internal rate of return, straight line depreciation, BRING CASH FLOWS