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A Note on Long-Term Capital Budgeting: Building a Discounted Cash Flow Analysis

Matthew Sooy, Jessica Kelly

商品編號:W37909
出版日期:2024/08/28
再版日期:2024/03/09
商品來源:
商品主題:Accounting; Finance
商品類型:Note
涵蓋議題:Time Value of Money;Financial Modeling;Financial Analysis
難易度:4 - Undergraduate/MBA
內容長度:15 頁
地域:Canada
產業:Agriculture; Forestry; Fishing and Hunting
事件年度:2023

This technical note provides introductory to intermediate accounting and finance students with an introduction to the construction of a discounted cash flow analysis. The scenario is a plausible and moderately complex “real-world” managerial decision of whether or not a business owner should purchase labour-saving farm equipment. This decision includes tax implications and long-lived assets. One of the greatest challenges that managers face is understanding exactly what type of problem they are facing. Before we can learn to invoke and apply the appropriate structure, we have to identify the essence of the problem. The next step is to identify the required information to make the right decision, after an appropriate framework has been applied.

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