• The Overall Process
  • The Overall Process
  • Capital Expenditures
  • The Three Stages of Capital Budgeting Analysis
  • Stage 1 - Decision Analysis
  • Stage 2 - Option Pricing
  • Stage 3 - Discounted Cash Flows
• Calculating the Discounted Cash Flows
  • Calculating the Discounted Cash Flows
  • Discounted Cash Flows
    • Depreciation
    • Working Capital
    • Overhead
    • Financing Costs
  • Examples
  • Calculating the Present Value of Cash Flows
  • Calculating Net Investment
• Three Economic Criteria for Evaluating Capital Projects
  • Three Economic Criteria for Evaluating Capital Projects
  • Three Economic Criteria
  • Net Present Value
  • Modified Internal Rate of Return
  • Discounted Payback Period
• Additional Considerations in Capital Budgeting Analysis
  • Additional Considerations in Capital Budgeting Analysis
  • Additional Considerations
  • Adjusting for Risk
  • International Projects
  • Post Analysis
  • Course Summary