16 Lecture

16 Lecture - Sensitivity Analysis Taking one variable and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 16 20:30 Chapter 9 Discount cash flows Abide by corporation rules Effects of cash flow P 261 near bottom “recognizing working capital” Net working capital (aka) = short term assets or liabilities Should have twice as many short term assets than short term liabilities Overhead costs p 262 Corporations for every department have an overhead allocation P269 for analysis, usually excel besides software Salvage run Chapter 10 P 286 – Capital budget – Things that need capital (big capital budget) Corporation – has to be some consistency, have set things to ensure consistency. 
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Sensitivity Analysis Taking one variable and making a change to it to see what happens The client gets to see if their expense level gets too high that they will be in trouble Scenario analysis If we had a recession we have a bunch of things we need to consider If we have boom times we have other things we need to consider Break even analysis p. 292-94 The more units you make the more money you make. There are fixed costs (Electricity) 20:30 20:30...
View Full Document

Page1 / 3

16 Lecture - Sensitivity Analysis Taking one variable and...

This preview shows document pages 1 - 3. Sign up to view the full document.

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