tailieunhanh - Lecture Chapter 9: Net Present Value and Other Investment Criteria

Contents: Capital Budgeting Process, Payback, Discounted, Payback, Net Present Value, Profitability Index, The Average Accounting Return, The Internal Rate of Return, Modified Internal Rate of Return, The Practice of Capital Budgeting. | 9-1 Net Present Value and Other Investment Criteria Chapter 9 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Notes to the Instructor: The PowerPoints are designed for an introductory finance class for undergraduates with the emphasis on the key points of each chapter Each chapter’s PowerPoint is designed for active learning by the students in your classroom Not everything in the book’s chapter is necessarily duplicated on the PowerPoint slides There are two finance calculators used (when relevant). You can delete the slides if you don’t use both TI and HP business calculators Animation is used extensively. You can speed up, slow down or eliminate the animation at your discretion. To do so just open a chapter PowerPoint and go to any slide you want to modify; click on “Animations” on the top of your PowerPoint screen tools; then click on “Custom Animations”. A set of options will appear on the right of your screen. You can “change” or . | 9-1 Net Present Value and Other Investment Criteria Chapter 9 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Notes to the Instructor: The PowerPoints are designed for an introductory finance class for undergraduates with the emphasis on the key points of each chapter Each chapter’s PowerPoint is designed for active learning by the students in your classroom Not everything in the book’s chapter is necessarily duplicated on the PowerPoint slides There are two finance calculators used (when relevant). You can delete the slides if you don’t use both TI and HP business calculators Animation is used extensively. You can speed up, slow down or eliminate the animation at your discretion. To do so just open a chapter PowerPoint and go to any slide you want to modify; click on “Animations” on the top of your PowerPoint screen tools; then click on “Custom Animations”. A set of options will appear on the right of your screen. You can “change” or “remove” any line of that particular slide using the icon on the top of the page. The speed is one of the three options on every animation under “timing”. Effort has been made to maintain the basic “7x7” rule of good PowerPoint presentations. Additional problems and/or examples are available on McGraw-Hill’s Connect. 1 9-2 Chapter Outline Capital Budgeting Process Payback Discounted Payback Net Present Value Profitability Index Every faculty member has his/her “favorite” capital budgeting techniques. Clearly the “big three” of payback, NPV and IRR need to be presented but the other techniques are to be presented at your discretion. This chapter is set up such that you can eliminate slides of the techniques that you prefer to be left in the textbook and not in your lecture. You can drop them from the “chapter outline” and the table of “Capital Budgeting Decision Criteria Comparisons” for a smooth flow of PowerPoint material. Lecture Tip: A logical prerequisite to the analysis of investment .