tailieunhanh - Lecture Managerial accounting: Chapter 10 - Weygandt, Kieso, & Kimmel

Chapter 10 - Capital budgeting. After studying this chapter, you should be able to: Discuss the capital budgeting evaluation process and explain what inputs are used in capital budgeting, describe the cash payback technique, explain the net present value method, identify the challenges presented by intangible benefits in capital budgeting, | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 10 Capital Budgeting After studying this chapter, you should be able to: 1 Discuss the capital budgeting evaluation process and explain what inputs are used in capital budgeting. 2 Describe the cash payback technique. 3 Explain the net present value method. 4 Identify the challenges presented by intangible benefits in capital budgeting. Chapter 10 Capital Budgeting After studying this chapter, you should be able to: 5 Describe the profitability index. 6 Indicate the benefits of performing a post-audit. 7 Explain the internal rate of return method. 8 Describe the annual rate of return method. Chapter 10 Capital Budgeting Preview of Chapter 10 Capital Budgeting Evaluation Process Cash Flow Information Illustrative Data Net Present Value Method Equal Cash Flows Unequal Cash Flows Choosing a Discount Rate Simplifying | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 10 Capital Budgeting After studying this chapter, you should be able to: 1 Discuss the capital budgeting evaluation process and explain what inputs are used in capital budgeting. 2 Describe the cash payback technique. 3 Explain the net present value method. 4 Identify the challenges presented by intangible benefits in capital budgeting. Chapter 10 Capital Budgeting After studying this chapter, you should be able to: 5 Describe the profitability index. 6 Indicate the benefits of performing a post-audit. 7 Explain the internal rate of return method. 8 Describe the annual rate of return method. Chapter 10 Capital Budgeting Preview of Chapter 10 Capital Budgeting Evaluation Process Cash Flow Information Illustrative Data Net Present Value Method Equal Cash Flows Unequal Cash Flows Choosing a Discount Rate Simplifying Assumptions Comprehensive Example CAPITAL BUDGETING Cash Payback Preview of Chapter 10 Additional Considerations Intangible Benefits Mutually Exclusive Projects Risk Analysis Post-audit of Projects Other Capital Budgeting Techniques Internal Rate of Return Comparing Discounted Cash Flow Methods Annual Rate of Return CAPITAL BUDGETING Capital Budgeting The process of making capital expenditure decisions is known as capital budgeting. Capital budgeting involves choosing among various capital projects to find one(s) that will maximize a company’s return on its financial investment. Discuss the capital budgeting evaluation process, and explain what inputs are used in capital budgeting. Study Objective 1 The Capital Budgeting Evaluation Process Many companies follow a carefully prescribed process in capital budgeting. The process usually includes the following steps: 1 Project proposals are requested from departments, plants, and authorized personnel. 2 Proposals are screened by a capital