Introduction to corporate nance Chapter 1
www.afr.com.au The Australian Financial Reviewthis newspaper is an
excellent daily resource.
www.bloomberg.com This is a nancial news service sitea link provides
Australian financial information; currency conversi
MEI/\Eltzl L HELdVHO
Part 4 Capital budgeting
Suggested reading. :1
For a discussion of the capital budgeting techniques used by large'iirrns, see: . . _ .
Bierman, H dr'&.8midt, S 2006 me Capital Budgeting Decision: Economic Ana/sis oflnvestment Pr
i 190 Part 3 Valuation of future cash fiowa
Suggested treading =
' The hast piece to ibdhihddtfdhai J " ' '
Some good ones are; '_ .
Breaie'y, R, Myers, S, P
artington, G & Robinson. D 2008. Prinoijoles of Comerate Finanoe 9t
NEH/EH 9 HaidVHO
Part 3 Valuation of future cash fIOWS
We can then solve fort explicitly:
12 log 210091.12
Almost all calculators can determine a logarithm; look for a key labelled 'log' or in. If both are present,
use either one but you ne
Making capital investment decisions Chapter 8
Annual equivalent cost (PIES) 248 Opportunity cost 232
Erosion 232 Stand-alone principle 231
Incremental cash flows 231 Sunk cost 232
. For more on the capital budgeting decision se