tailieunhanh - Lecture Managerial accounting - Chapter 9: Capital budgeting

Chapter 9 - Capital budgeting. After studying this chapter you will be able to understand: Capital budgeting decisions, time value of money, discounted cash flow techniques, other captial budgeting techniques. | CHAPTER © jsnyderdesign / iStockphoto 9 CAPITAL BUDGETING WHY DIDN’T I THINK OF THAT? What does every baseball player need to complete the uniform? A cap. What a business opportunity for C&C Sports! Or is it? CAPITAL BUDGETING DECISIONS Unit 9 1 . Unit Unit © Tomwang112 / iStockphoto Unit CAPITAL BUDGETING IS A systematic approach to evaluating an investment in a capital asset A process for evaluating long-range investment proposals for the purpose of allocating limited resources Different from cash budgeting because of the time horizon involved WHAT ARE CAPITAL ASSETS? Equipment or facilities that provide productive services to the organization for more than one accounting period Also called depreciable assets or long-lived assets WHY DO YOU INVEST? For expected future returns Return of investment Return on investment RETURN OF INVESTMENT VS. RETURN ON INVESTMENT Suppose you buy a share of a company’s stock today at $26 and sell it in one month for $ Return ON | CHAPTER © jsnyderdesign / iStockphoto 9 CAPITAL BUDGETING WHY DIDN’T I THINK OF THAT? What does every baseball player need to complete the uniform? A cap. What a business opportunity for C&C Sports! Or is it? CAPITAL BUDGETING DECISIONS Unit 9 1 . Unit Unit © Tomwang112 / iStockphoto Unit CAPITAL BUDGETING IS A systematic approach to evaluating an investment in a capital asset A process for evaluating long-range investment proposals for the purpose of allocating limited resources Different from cash budgeting because of the time horizon involved WHAT ARE CAPITAL ASSETS? Equipment or facilities that provide productive services to the organization for more than one accounting period Also called depreciable assets or long-lived assets WHY DO YOU INVEST? For expected future returns Return of investment Return on investment RETURN OF INVESTMENT VS. RETURN ON INVESTMENT Suppose you buy a share of a company’s stock today at $26 and sell it in one month for $ Return ON investment $ Return OF investment $ SCREENING VS. PREFERENCE DECISIONS Screening Decisions Which projects meet the hurdle rate? Which of the projects are acceptable for the organization in light of its goals? Preference Decisions Of the acceptable projects, which ones should be implemented? SCREENING VS. PREFERENCE IDENTIFYING PROJECT CASH FLOWS Cash receipts Additional sales revenue Salvage value of equipment Cost savings Cash disbursements Purchase price Additional operating costs (DM, DL, MOH, SG&A) DO NOT include interest from financing the acquisition of the asset Identify when the cash flows occur CASH FLOWS OF THE TOPCAP SYSTEM Cash Flow Amount Timing Cash Inflows Sales revenue (250,000 caps ×$ per cap) $625,000 Years 1 – 10 Cash Outflows Purchase and installation of TopCap system $ 50,265 Year 0 Purchase of direct materials (250,000 caps ×$ per cap) $500,000 Years 1 – 10 Direct labor (3 employees×8 hours/day×$×5 days/week×50 weeks per year) $ 57,600 .

• Kế toán - Kiểm toán
• Managerial accounting
• Lecture Managerial accounting
• Process costing
• Standard costing systems
• Capital budgeting
• Capital budgeting decisions
• Managerial accounting for managers
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
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• Managerial accounting information
• General cost classifi cations
• Product costs
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• Financial statement
• Cost concepts
• Managerial accounting basics
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• Relevant costing
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