Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A Practical Guide to Corporate FinanceCapital Budgeting

A Practical Guide to Corporate Finance: Capital Budgeting [Thinking about whether to go to college, deciding whether to buy a company or choosing between two machine tools: these are all investment decisions. You try to make the best decision: the one that is most profitable for the company or for yourself. When choosing investments, we rely on decision-making criteria (not too difficult) and on a forecast of future cash flows (a little more complicated …). In Chapter 1 we saw how to analyse a company’s financial statements and we ended with cash flows—the lifeblood of the company. We will now use this knowledge to make cash flow forecasts. In Chapter 2 we suffered through a few financial calculations, including discounting. We will make use of this knowledge in our decision-making criteria.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Practical Guide to Corporate FinanceCapital Budgeting

Download PDF
28 pages

Loading next page...
 
/lp/springer-journals/a-practical-guide-to-corporate-finance-capital-budgeting-KZ1ADkFXf0

References (0)

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Palgrave Macmillan UK
Copyright
© The Editor(s) (if applicable) and The Author(s) 2015
ISBN
978-1-349-55265-8
Pages
74 –102
DOI
10.1057/9781137492548_4
Publisher site
See Chapter on Publisher Site

Abstract

[Thinking about whether to go to college, deciding whether to buy a company or choosing between two machine tools: these are all investment decisions. You try to make the best decision: the one that is most profitable for the company or for yourself. When choosing investments, we rely on decision-making criteria (not too difficult) and on a forecast of future cash flows (a little more complicated …). In Chapter 1 we saw how to analyse a company’s financial statements and we ended with cash flows—the lifeblood of the company. We will now use this knowledge to make cash flow forecasts. In Chapter 2 we suffered through a few financial calculations, including discounting. We will make use of this knowledge in our decision-making criteria.]

Published: Dec 21, 2015

Keywords: Cash Flow; Work Capital Requirement; Payback Period; Future Cash Flow; Cash Flow Forecast

There are no references for this article.