tailieunhanh - Financial Analysis: Tools and Techniques Phần 7

Phân tích tài chính: Công cụ và kỹ thuật Tuy nhiên, thay thế 3 cũng là một trong những tốn kém nhất, và tạo ra giá trị mỗi đồng đô la đầu tư (BCR) có phần ít hơn so với thay thế 1. | 282 Financial Analysis Tools and Techniques present value. But Alternative 3 is also the most expensive one and its creation of value per dollar invested BCR is somewhat less than Alternative 1. A useful way of thinking through the purely economic aspects of mutually exclusive alternatives is again to examine the incremental benefits obtained as one moves from the least expensive to the most expensive as we did in the prior example. In this situation the incremental investment for Alternative 2 is 100 000 but it reduces net present value from 40 256 to 8 864. This clearly is not desirable and the lower IRR and BCR measures for Alternative 2 confirm this. Going from Alternative 1 to Alternative 3 however results in an incremental investment of 250 000 which improves net present value by 14 416. This incremental investment certainly exceeds the company standard of 14 percent because its IRR can be calculated at percent. This result is not quite as attractive as Alternative 1 with an IRR of percent but then the question becomes whether the company has any other projects that might give a return better than percent. If not Alternative 3 should be favored assuming that all other judgmental aspects are comparable among the three alternatives especially that the higher volume of business can in fact be counted on. Many other factors of course will have to be considered for a final decision such as the relative technological and operational risks of the alternatives issues of implementation and market aspects. What we ve shown here is the interpretation of the economic results alone to illustrate their use in assessing value creation. Dealing with Risk and Changing Circumstances Throughout this discussion we have dealt with estimates of future costs and benefits largely as givens. In practice estimates are more often than not proved wrong by actual experience in either direction. When projects are performing better than expected all is well. When actual .