Chapter 10 Mini Case
in thousends of USD
Franchise L Franchise S
What is Capital Budgeting?
Capital Budgeting is the process that analyzes the addition to the Operations Capital ba
Term Paper Spreadsheet Instructions
1. Make a copy of the spreadsheet in case you make an error. This will allow you to
go back and recover any lost formulae. You will note that most of the cells on the
spreadsheet have for
TIME VALUE of MONEY FUNCTIONS
See also Help worksheet
Future value of a lump sum
pv x (1+i)n
Example: How much will $10,00
Capital Structure and Leverage
In pervious lecturer we learned about the cost of capital. We calculated the
weighted average cost of capital based on a given capital structure. In this lecture we are
going to study the nature of the capital s
Capital budgeting is the decision-making process that establishes the goals and
criteria for planning and investing a firms resources in fixed assets or long-term projects.
Capital budgeting normally includes the evaluation of projects like l
Review of Financial Statements
Upon completion of this lecture, you will be able to:
Define the functions of financial statements.
Describe the basic financial statements.
Describe the need for understanding financial stat
Chapter 10. Mini Case
Capital Budgeting Decisions
You have just graduated from the MBA program of a large university, and one of your favorite courses was "Today's
Entrepreneurs." In fact, you e
You have just graduated from the MBA program of a large university, and one of favorite courses
was "Today's Entrepreneurs." In fact, you enjoyed it so much you have decided you want to "be
your own boss." While you were in the master's program, your gran
The Investment Detective
The essence of capital budgeting and resource allocation is a search for good investments in
which to place the firms capital. The process can be simple when viewed in purely mechanical
terms, but a number of subtle iss
Time Value of Money
Assume that you are nearing graduation and that you have applied for a job with a local
bank. As part of the bank's evaluation process, you have been asked to take an
examination which covers several financial analy
Time Value Exercise
Complete this exercise after reviewing Module 4. You may refer back to that module if desired.
Place your responses in the grid below.
How much would you accept in lump sum today, in place of a lottery payment of $50,000
at the end