281 views

Uploaded by Haery Sihombing

save

You are on page 1of 34

is Important to Engineers

Ir. HaerySihombing (IP)

Pensyarah Fakulti Kejuruteraan Pembuatan (and other professionals)

Universiti Teknologi Malaysia Melaka

MANUFACTURING

ECONOMY

• Engineers “Design”

Design” • Engineers must work within the realm of

•Engineers must be concerned with the economics and justification of engineering

economic aspects of designs and projects projects

they recommend and perform •Work with limited funds (capital)

•Analysis •Capital is not unlimited – rationed

•Design •Capital does not belong to the firm

•Synthesis •Belongs to the Owners of the firm

•Capital is not “free”…

free”…it

it has a “cost”

cost”

Technical Perspective Economic Considerations

Technical Feasibility: Economic Feasibility:

In order to ensure the implementation of The solutions provided must not exceed

the design, the solution provided must obey monetary budget limits

the laws of nature and science

Technical Efficiency: Economic Efficiency:

Because there may be many solutions to a The most economical of the many technical

problem, the best technical solution should be solution to a problem should be choosen

sought. Examples include designing solutions that

generate the least waste, consume the lest

energy, perform reliably in adverse conditions,

and allow for easy production or maintenance

Definition Definition

THE FORMULATION, ESTIMATION, AND ENGINEERING ECONOMY IS INVOLVED WITH

EVALUATION OF ECONOMIC OUTCOMES WHEN THE APPLICATION OF DEFINED MATHEMATICAL

ALTERNATIVES TO ACCOMPLISHED A DEFINED RELATIONSHIPS THAT AID IN THE COMPARISON

PURPOSE ARE AVAILABLE. OF ECONOMIC ALTERNATIVES

Role of Engineering Economy

Questions in Decision Making

Remember: People make decisions – not “tools”

tools”

a significant impact on you, personally.

• Engineering Economy is a set of tools that aid in

•Make proper economic comparisons decision making – but will not make the decision for

•In your profession you

•Private sector • Engineering economy is based mainly on

estimates of future events – must deal with the future

•Public sector and risk and uncertainty

•In your personal life

economy problem can and will vary over time the assessment of most, if not all,

engineering economy problems

¾Parameters that can vary will dictate a

numerical outcome – apply and understand ..

¾ The use of spreadsheets is now common

and students need to master this valuable

¾Sensitivity Analysis tool as an analysis aid

DECISION CATEGORIES DECISION CATEGORIES (Cont’

(Cont’)

1. Profit-

Profit-Enhancing Program 2. Cost-

Cost-Control Program

A company may expand production, its Engineers are often asked to correct errors in

systems-errors that cost money. Designing and

increase sales. These ventures generally implementing solutions also costs money,

take considerable investment, with hope including, at a minimum, the time and effort

of increasing revenues spent by the engineer in finding a solution to the

problem. The expectation is that the engineer will

a. New Product Development provide solution that will save money in the long

b. New product Acquisition

run a. Improving Efficiency

c. Production Capacity Expansion

d. Service Capacity Expansion b. Streamlining Operations

e. Improved Customer Service c. Eliminating Waste

d. Reducing Liabilities

(Cont’) DECISION CLASSIFICATION

3. Public-

Public-Improvement Program 1. EXPANSION

Government entities often make investments, This can take many forms, including expanding he

the goals of which is not to increase profits, but production capacity of a current and expanding

rather to increase some measure of public into new markets with new products or services.

satisfaction

a. New product design and development

a. Increased public satisfaction b. Expansion of current development

b. Increased public safety c. Construction of new facility

c. Improved infrastructure d. Acquiring capacity

e. Equipment, process, or technology selection

DECISION CLASSIFICATION (Cont’

(Cont’) DECISION CLASSIFICATION (Cont’

(Cont’)

2. REPLACEMENT 3. ABANDONMENT

A company may want to continue operations or Although it may not seem like an investment

services in some sector, but may want to do so in a decision, the decision to walk away from a project,

more economical manner. This may lead to replacing such as closing a facility, is a very important

equipment, changing processes, or changing locations. economic decision. It also represents the final

a. Equipment, process, or technology selection stage in our decision-

decision-making process.

b. In house versus outsourcing a. Cease production

b. Cease product line

c. Close a facility

d. Retire equipment

INVEST 1. Understand the Problem (Recognition and definition

This “accept”

accept” or “go”

go” decision releases the necessary funding

of problem or opportunity)

to undertake a project

2. Collect all relevant data/information (Generation

DELAY of solution alternatives)

This “wait”

wait” decision provides time to gather more information 3. Define the feasible alternatives (Development of

about the prospects of an investment or merely for the feasible alternative cash flows and information gathering)

investment climate to change. On the one hand, the decision

to delay may occur before a “go”

go” decision 4. Evaluate each alternative

DO NOT INVEST 5. Select the “best”

best” alternative (Selection and

This “reject”

reject” or “no go”

go” decision eliminates a proposal from implementation the best alternative)

further consideration. This decision also encompasses halting

for a project, as in the abandonment decision just described 6. Implement and monitor (Post-

(Post-implementation

analysis and evaluation)

Problem Solving Approach Problem Solving Approach

1. Understand the Problem

1. Understand the Problem

2. Collect all relevant data/information

2. Collect all relevant data/information

3. Define the feasible alternatives

3. Define the feasible alternatives

4. Evaluate each alternative

4. Evaluate each alternative

5. Select the “best” alternative

5. Select the “best” alternative

6. Implement and monitor

6. Implement and monitor

Engineering difficult tasks

Economy

2. Collect all relevant data/information 2. Collect all relevant data/information

3. Define the feasible alternatives 3. Define the feasible alternatives

4. Evaluate each alternative 4. Evaluate each alternative

5. Select the “best” alternative 5. Select the “best” alternative

Where the major tools

6. Implement and monitor of Engineering 6. Implement and monitor Tools

Present Worth, Future Worth

Economy are applied Annual Worth, Rate of Return

Benefit/Cost, Payback,

Capitalized Cost, Value Added

Time Value of Money Performing a Study

• Money can “make” money if Invested alternatives (two or more ways to solve a

• Centers around an interest rate

problem)

Alternative ways to solve a problem must

given time period is called the time value of Estimate the cash flows for the alternatives

money; by far, the most important concept

Analyze the cash flows for each alternative

in engineering economy

• Concept of the time value of $$

• An Interest Rate Estimates of useful or project life

• Some measure of economic worth

Estimated future cash flows (revenues and

• Evaluate and weigh expenses and salvage values)

• Factor in non-

non-economic parameters Interest rate

• Select, implement, and monitor

Inflation and tax effects

Cash Flows Alternatives

• Estimate flows of money coming into the Each problem will have at least one

firm – revenues salvage values, etc. alternative – DO NOTHING

(magnitude and timing) – positive cash flows

• May not be free and may have future

• Estimates of investment costs, operating costs associated

costs, taxes paid – negative cash flows

• Do not overlook this option!

•Goal: Define, Evaluate, Select and Execute • Select One and only one from a set of

feasible alternatives

The Question:

• Once an alternative is selected, the

Do remaining alternatives are excluded at

Alt. 1 Which One do

Nothing that point.

we accept?

More Alternatives Default Position

•Goal: Define, Evaluate, Select and Execute ¾ If all of the proposed alternatives are not

economically desirable then…

Alt. 1 ………... Alt. j

Nothing alternative

Taxes Taxes

¾ Taxes represent a significant negative cash ¾ A Before-Tax cash flow analysis (while

flow to the for-profit firm. not as accurate) is often performed as a

¾ A realistic economic analysis must assess the preliminary analysis

impact of taxes

¾ A final, more complete analysis should

•Called and AFTER-TAX cash flow analysis be performed using an After-Tax analysis

¾ Not considering taxes is called a BEFORE-

¾ Both are valuable analysis approached

TAX Cash Flow analysis

Interest Rate Interest Rates and Returns

INTEREST RATE - INTEREST PER TIME

UNIT 9 Lending situation

9 Investing situation

INTEREST PER TIME UNIT

INTEREST RATE

ORIGINAL AMOUNT

else's money) •You borrow $10,000 for one full year

9 The lender expects a return on the •Must pay back $10,700 at the end of one year

money lent •Interest Amount (I) = $10,700 - $10,000

9 The return is measured by application of •Interest Amount = $700 for the year

an interest rate

•Interest rate (i) = 700/$10,000 = 7%/Yr

Interest Rate - Notation Interest – Borrowing (Example)

•The interest rate (i) is 7% per year

•For example 1 the interest rate is..

•The interest amount is $700 over one year

•Expressed as a per cent per year

•The $700 represents the return to the lender for

•Notation this use of his/her funds for one year

• I = the interest amount is $ •7% is the interest rate charged to the borrower

• i = the interest rate (%/interest period) •7% is the return earned by the lender

• N = No. of interest periods (1 for this problem)

•Borrow $20,000 for 1 year at 9% interest per year •Note the following

• i = 0.09 per year and N = 1 Year •Total Amount Due one year hence is

• Pay $20,000 + (0.09)($20,000) at end of 1 year • ($20,000) + 0.09($20,000)

• Interest (I) = (0.09)($20,000) = $1,800 • =$20,000(1.09) = $21,800

• Total Amt Paid one year hence • The (1.09) factor accounts for the repayment

•$20,000 + $1,800 = $21,800 of the $20,000 and the interest amount

• This will be one of the important interest

factors to be seen later

Interest – Investing Perspective Inflation Effects

•Assume you invest $20,000 for one year in a •A social-economic occurrence in which

venture that will return to you, 9% per year. there is more currency competing for

constrained goods and services

•At the end of one year, you will have:

•Where a country’s currency becomes

•Original $20,000 back

worth less over time thus requiring more of

•Plus…….. the currency to purchase the same amount

of goods or services in a time period

•The 9% return on $20,000 = $1,800

This is your RATE of RETURN on the investment

9 Purchasing Power (reduces) •You travel at 68 miles per hour

9 Operating Costs (increases) •Equivalent to 110 kilometers per hour

9 Rate of Returns on Investments (reduces) •Thus:

• 68 mph is equivalent to 110 kph

• Using two measuring scales

• Miles and Kilometers

EQUIVALENCE ECONOMIC EQUIVALENCE

•No, not in terms of absolute numbers • Two sums of money at two different points in

time can be made economically equivalent if:

•But they are “equivalent” in terms of the two

measuring scales 9We consider an interest rate and,

•Miles 9No. of Time periods between the two sums

•Kilometers

Equality in terms of Economic Value

received here

Diagram)

•The company’s perspective is shown T=0 t = 1 Yr

received here back here

one year from now IF the interest rate is set to

$21,800 paid

back here equal 9%/year

Equivalence Illustrated Equivalence Illustrated

• $20,000 now is not equal in magnitude to • If you were told that the interest rate is 9%....

$21,800 1 year from now

•Which is worth more?

• But, $20,000 now is economically equivalent to

•$20,000 now or

$21,800 one year from now if the interest rate in

9% per year. •$21,800 one year from now?

•Another way to put it is …….. •The two sums are economically equivalent but

not numerically equal!

•To have economic equivalence you must specify: •Two “types” of interest calculations

•Timing of the cash flows 9 Simple Interest

•An interest rate (i% per interest period) 9 Compound Interest

•Number of interest periods (N) • Compound Interest is more common worldwide

and applies to most analysis situations

Simple and Compound Interest Simple and Compound Interest

•Calculated on the principal amount only • Borrow $1000 for 3 years at 5% per year

•Easy (simple) to calculate • Let “P” = the principal sum

•Simple Interest is: • i = the interest rate (5%/year)

$I = (P)(i)(n)

•DEFINITION •Year 1

•I = P(i)(N) •I1 = $1,000(0.05) = $50.00

•For : •Year 2

•I = $1000(0.05)(3) = $150.00 •I2 = $1,000(0.05) = $50.00

•Total Interest over 3 Years •Year 3

•I3 = $1,000(0.05) = $50.00

Accrued Interest Year 1 Accrued Interest Year 2

•“Accrued” means “owed but not yet paid” •Year 2

•First Year:

P=$1,000 P=$1,000

1 2 3 1 2 3

$50.00 interest accrues but not paid $50.00 interest accrues but not paid

P=$1,000

interest:

•The accrued interest does not earn interest

1 2 3 during the succeeding time period

I1=$50.00 I2=$50.00 I3=$50.00 •Normally, the total sum borrowed (lent) is paid

Pay back $1000 back at the end of the agreed time period PLUS

The unpaid interest did not + $150 of the accrued (owed but not paid) interest.

interest

earn interest over the 3-year

period

Compound Interest Compound Interest

associated interest and add it to the unpaid

•Compound means to stop and compute

balance.

•In this application, compounding means to •When interest is compounded, the interest that

compute the interest owed at the end of is accrued at the end of a given time period is

the period and then add it to the unpaid added in to form a NEW principal balance.

balance of the loan •That new balance then earns or is charged

•Interest then “earns interest” interest in the succeeding time period

associated interest and add it to the unpaid

balance. •P = $1,000

•When interest is compounded, the interest that • i = 5% per year compounded annually

is accrued at the end of a given time period is (C.A.)

added in to form a NEW principal balance.

•N = 3 years

•That new balance then earns or is charged

interest in the succeeding time period

Compound Interest Cash Flow Compound Interest: Calculated

P=$1,000 •P0 = +$1,000

Owe at t = 3

years: •I1 = $1,000(0.05) = $50.00

1 2 3

$1,000 + 50.00 + •Owe P1 = $1,000 + 50 = $1,050 (but, we don’t

I1=$50.00 52.50 + 55.13 =

I2=$52.50 pay yet!)

$1157.63

I3=$55.13 •New Principal sum at end of t = 1: = $1,050.00

• New Principal sum: $1,102.50

• Principal and end of year 1: $1,050.00

•I3 = $1102.50(0.05) = $55.125 = $55.13

•I1 = $1,050(0.05) = $52.50 (owed but not paid)

•Add to the beginning of year principal yields:

•Add to the current unpaid balance yields:

•$1102.50 + 55.13 = $1157.63

•$1050 + 52.50 = $1102.50

•This is the loan payoff at the end of 3 years

•New unpaid balance or New Principal Amount

•Note how the interest amounts were added to

•Now, go to year 3……. form a new principal sum with interest calculated

on that new amount

Example Example : 5 Plans

• Plan 5. Equal Payments of the compound

• Five plans are shown that will pay off a loan of

interest and principal reduction over 5 years with

$5,000 over 5 years with interest at 8% per year.

end of year payments.

•Plan1. Simple Interest, pay all at the end

Note: The following tables will show the five

•Plan 2. Compound Interest, pay all at the end approaches. For now, do not try to understand

•Plan 3. Simple interest, pay interest at end of how all of the numbers are determined (that will

come later!) Focus on the methods and these

each year. Pay the principal at the end of N = 5

table illustrate economic equivalence

•Plan 4. Compound Interest and part of the

principal each year (pay 20% of the Prin. Amt.)

• Simple Interest: Pay all at end on $5,000 Loan • Pay all at the End of 5 Years

Plan 3: Simple Interest Pd. Annually Plan 4 Compound Interest

• Principal Paid at the End (balloon Note) • 20% of Principal Paid back annually

• Plan 1 Simple interest = (original principal)(0.08)

Equal Annual Payments (Part Principal and Part Interest

• Plan 2 Compound interest = (total owed previous

year)(0.08)

• Plan 3 Simple interest = (original principal)(0.08)

• Plan 4 Compound interest = (total owed previous

year)(0.08)

• Plan 5 Compound interest = (total owed previous

year)(0.08)

Analysis Terminology and Symbols

• Note that the amounts of the annual payments Specific symbols and their respective

are different for each repayment schedule and definitions has been developed for use in

that the total amounts repaid for most plans are engineering economy

different, even though each repayment plan Symbols tend to be standard in most

requires exactly 5 years. engineering economy texts world-wide

•The difference in the total amounts repaid can Mastery of the symbols and their respective

be explained (1) by the time value of money, (2) meanings is most important in understanding of

by simple or compound interest, and (3) by the the subsequent material!

partial repayment of principal prior to year 5.

designated as the present or time 0. time.

•Also P is referred to as present worth (PW), •Also F is called future worth (FW) and future

present value (PV), net present value (NPV), value (FV); dollars

discounted cash flow (DCF), and capitalized

cost (CC); dollars

Terminology and Symbols Terminology and Symbols

end-of-period amounts of money. time period; percent per year, percent

per month

Also A is called the annual worth (AW) and

equivalent uniform annual worth (EUAW); • t = time, stated in periods; years,

dollars per year, dollars per month months, days, etc

n = number of interest periods; years,

months, days

P and F P and F:

• The symbols P and F represent one-time It should be clear that a present value

occurrences: $F P represents a single sum of money at

•Specifically: some time prior to a future value F

This is an important basic point to

0 1 2 … … n-1 n remember

t=n

$P

Annual Amounts Annual Amounts

• It is important to note that the symbol A might look like the following:

always represents a uniform mount (i.e.,

the same amount each period) that $A $A $A $A $A

extends through consecutive interest

…………

periods.

0 1 2 3 .. N-1 n

compound rate, unless specifically stated 9Involve the dimension of time

•As “simple interest”

9At least 4 of the symbols { P, F, A, i% and n }

•The rate i is expressed in percent per interest 9At least 3 of 4 are either estimated or

period, for example, 12% per year. assumed to be know with certainty.

Intro to Solution by Computer Spreadsheets

• Use of a spreadsheet similar to Microsoft’s

Excel is fundamental to the analysis of • Excel supports (among many others) six built-

engineering economy problems. in functions to assist in time value of money

analysis

•Appendix A of the text presents a primer on

spreadsheet use •Master each on your own and set up a variety

of the homework problems (on your own)

•All engineers are expected by training to know

how to manipulate data, macros, and the

various built-in functions common to

spreadsheets

NPER(i%,A,P,F)

•To find the future value F: FV(i%,n,A,P) •To find the compound interest rate i:

RATE(n,A,P,F)

•To find the compound interest rate i:

•To find the equal, periodic value A:

PMT(i%,n,P,F) IRR(first_ cell:last_ cell)

Financial Functions - continued

Minimum Attractive Rate

of Return (MARR)

¾ Firms will set a minimum interest rate that the

• To find the present value P of any series: financial managers of the firm require that all

NPV(i%,second_cell_last cell) + first cell accepted projects must meet or exceed.

• These built-in Excel functions support a wide ¾The rate, once established by the firm is termed

variety of spreadsheet models that are useful in the Minimum Attractive Rate of Return (MARR)

engineering economy analysis. ¾The MARR is expressed as a per cent per year

¾Numerous models exist to aid the financial

managers is estimating what this rate should be in

a given time period.

• In some circles, the MARR is termed the Hurdle

and resources in a project with the expectation

Rate

of earning a return over and above the worth

of the resources that were committed. • Capital (investment funds) is not free

Economic Efficiency means that the returns •It costs the firm money to raise capital or to use

should exceed the inputs. the owners of the firm’s capital.

In the for profit enterprise, economic •This cost is often expressed as a % per year

efficiencies greater than 100% are required!

Cost of Capital: Personal Example Cost to a Firm

• Assume you want to purchase a new computer

• Equity – using the owner’s funds (retained

• Assume you have a charge card that carries a

earnings, cash on hand )belongs to the owners)

18% per year interest rate.

• Owners expect a return on their money and

• If you charge the purchase, YOUR cost of capital

hence, there is a cost to the firm

is the 18% interest rate.

•DEBT – the firm borrows from outside the firm and

•Very high!

pays an interest rate on the borrowed funds

9 Financial models exist that will approximate • First, start with a “safe” investment possibility

the firm’s weighted average cost of capital for a

• A firm could always invest in a short term CD

given time period.

paying around 4-5%

9 Once this “cost” is approximated, then, new

• But investors will expect more that that!

projects up for funding MUST return at least the

cost of the funds used in the project PLUS some • The firm should compute it’s current weighted

additional per cent return. average cost of capital (See Chapter 10)

9 The cost is expressed as a % per year just •This cost will almost always exceed a “safe”

like an interest rate. external investment rate!

Setting the MARR - continued Setting a MARR

• Assume the weighted average cost of capital • Start with the WACC…

(WACC) is say, 10.25% (for the sake of

•Add a buffer percent (?? Varies from firm to

presentation)

firm)

• Certainly, the MARR must be greater than the

• This yields an approximation to a reasonable

firms cost of capital in order to earn a “profit” or

MARR

“return” that satisfies the owners!

•This becomes the Hurdle Rate that all

•Thus, some additional “buffer” must be

prospective projects should earn in order to be

provided to account for risk and uncertainty!

considered for funding.

RoR - %

Acceptable range for new

projects

•Two projects, A and B

• A costs $400,000 and presents an estimated

MARR - % 13% per year.

• B cost $100,000 with an estimated return of

Safe Investment WACC - %

14.5%

0%

Opportunity Forgone Cash Flow Diagramming

• What if the firm has a budget of say $150,000 • Engineering Economy has developed a

graphical technique for presenting a problem

•A cannot be funded – not sufficient funds!

dealing with cash flows and their timing.

•B is funded and earns 14.5% return or more

• Called a CASH FLOW DIAGRAM

•A is not funded, hence, the firm looses the

• Similar to a free-body diagram in statics

OPPORTUNITY to earn 13%

• First, some important TERMS . . . .

•This often happens!

problems the cash flows must be:

•Money flowing INTO the firm from outside

• Assumed know with certainty

•Revenues, Savings, Salvage Values, etc

• Estimated

• CASH OUTFLOWS

• A range of possible realistic values provided

•Disbursements

• Generated from an assumed distribution and

• First costs of assets, labor, salaries, taxes paid, simulated

utilities, rents, interest, etc

Net Cash Flows End of Period Assumption

• Cash Inflows – Cash Outflows

•(for a given time period) ALL CASH FLOWS ARE ASSUMED TO OCCUR AT

THE END OF AN INTEREST PERIOD EVEN IF THE

• We normally assume that all cash flows occur: MONEY FLOWS AT TIMES WITHIN THE

INTEREST PERIOD.

•At the END of a given time period

THIS IS FOR SIMPLIFICATION PURPOSES

•End-of-Period Assumption

• First step in the solution process • The basic time line is shown below

• Graphical Representation on a time scale

• Does not have to be drawn “to exact scale”

•But, should be neat and properly labeled

•Required on most in class exams and part •“Now” is denoted as t = 0

of the grade for the problem at hand

Displaying Cash Flows Sample CF Diagram

Positive CF at t = 1

• Positive cash flows are normally drawn

upward from the time line

• Negative cash flows are normally drawn

downward from the time line

Negative CF’

CF’s at t = 2 & 3

• Before solving, one must decide upon the • Assume $5,000 is borrowed and payments are

perspective of the problem $1100 per year.

•Most problems will present two perspectives •Draw the cash flow diagram for this

•Assume a borrowing situation for example •First, whose perspective will be used?

•Perspective 1: From the lender’s view •Lender’s or the Borrower’s ? ? ?

•Perspective 2: From the borrower’s view •Problem will “infer” or you must decide….

•Impact upon the sing convention

Lending - Borrowing Lending - Borrowing

P = +$5,000

A = +$1100/yr

0 1 2 3 4 5 0 1 2 3 4 5

A = -$1100/yr

-$5,000

lump-sum amount into an investment

opportunity 2 years from now that is large

enough to withdraw $4000 per year for state

university tuition for 5 years starting 3 years

from now.

•If the rate of return is estimated to be 15.5%

per year, construct the cash flow diagram.

Rule of 72: Estimating Doubling Time

and Interest Rate

Rule of 72’s for Interest

investors is:

•The approximate time for an investment to

•How long will it take for my investment to double in value given the compound interest

double in value? rate is:

•Must have a known or assumed compound •Estimated time (n) = 72/i

interest rate in advance

•For i = 13%: 72/13 = 5.54 years

•Assume a rate of 13%/year to illustrate….

interest rate for an investment to double in

value over time as: •Application of economic factors and

criteria to evaluate alternatives

•i approximate = 72/n

considering the time value of money

•Assume we want an investment to double in (interest and time)

say 3 years.

•Estimate i –rate would be: 72/3 = 24%

Chapter 1 Summary Chapter 1 Summary

•Involves modeling the cash flows in understanding how different sums

of money at different times are equal

•Computing specific measures of

in economic terms

economic worth

•Using an interest rate(s)

•Over a specified period of time

•The differences between simple •The power of compounding is very

interest (based on principal only) and noticeable, especially over long periods

compound interest (based on principal of time.

and interest upon interest) have been

•Notion of computing interest on

described in formulas, tables, and

interest

graphs

Chapter 1 Summary Chapter 1 Summary

•The MARR is a reasonable rate of •Difficulties with their estimation.

return established as a hurdle rate to •Difference between estimated and

determine if an alternative is actual value.

economically viable.

•End-of-year convention for cash flow

•The MARR is always higher than a location.

return from a safe investment.

Chapter 1 Summary

•Net cash flow computation.

•Different perspectives in determining

the cash flow sign convention.

THE END

•Construction of a cash flow diagram.

•Introduction to spreadsheet analysis

- Jetblue Airways Ipo ValuationUploaded byteddywmt
- Corporate Finance Week 8 Final _ Tests & QuizzesUploaded byDonald112
- Practise Papers Question BanksUploaded bydipreet_kaur
- VC2Uploaded bymothermonk
- procter gamble analysisUploaded byapi-115328034
- Teori PortofolioUploaded byAlfrida Yuli
- SSRN-id1417289 (1)Uploaded bySky walking
- Finance ThesisUploaded byEhsan Karim
- Flash_memory_2.xlsxUploaded bySachin Gupta
- Brandfinance South Africa Top 50 2013Uploaded byBabu Vinothkumar
- Chapter 5 - Cost of Capital SML 401 Btech.pptxUploaded byRajanVerma
- IadsafUploaded byAngates1
- Ch11SolUploaded byCampbell Yu
- JetBlue Case StudyUploaded byXing Liang Huang
- calculate WACCUploaded byYuanyuan Song
- SF Tutorial Five AnswersUploaded byAniket Mehta
- Business Valuation SampleUploaded byDwinanda Septiadhi
- Homework Corporate FinanceUploaded byJuan David Barbosa
- Financial Management ReportUploaded byIqbal Hossain
- Group 3 Nn CaseUploaded byAlen Varzic
- Beximco Pharma ValuationUploaded byMidul Khan
- 1. BMRI-convertedUploaded byYonia Pagarayu Nababan

- DFMD 3513 Chapter-6 ForecastingUploaded byHaery Sihombing
- Pembangunan Kinerja Sektor Publik melalui Sistem Pembangunan Manusia dalam Lean ManajemenUploaded byHaery Sihombing
- DMFD 3513 Chapter-5 Supply Chain ManagementUploaded byHaery Sihombing
- BMFP 3582 Chapter 7 Time Value of Money (Present & Annual Woth)RUploaded byHaery Sihombing
- DFMD 3513 Manufacturing Management CH-1234Uploaded byHaery Sihombing
- DMFD 3513 CH-7 Aggregate & Capacity Planning RUploaded byHaery Sihombing
- BMFP 3582-Chapter 3456 Cost (Direct-Indirect-Marginal-Standard)Uploaded byHaery Sihombing
- BMFP 3582 Manufacturing Economy (Assignment-1)Uploaded byHaery Sihombing
- BMFP 3582 Chapter- 2 Manufacturing Account (L)Uploaded byHaery Sihombing
- Knowledge Vs Success Against Gut and Probability In Randomness ThoughtUploaded byHaery Sihombing
- BMFP 4512 Chapter-13 International ManagementUploaded byHaery Sihombing
- STRATEGI DAN INOVASI TERHADAP PASAR THE BOTTOM OF PYRAMID DALAM PERSPEKTIF TANGGUNGJAWAB SOSIAL KORPORASI1Uploaded byHaery Sihombing
- Catatan Pinggir-Hak Asasi BinatangUploaded byHaery Sihombing
- BMFP 4512 Chapter 8 Industrial Management & CostUploaded byHaery Sihombing
- BMFP 4512 Chapter-7 (Case Study 2-3 and Project-1)Uploaded byHaery Sihombing
- BMFP 4512 Chapter-9 Industrial Management & CostUploaded byHaery Sihombing
- BMFP 4512 Chapter-12 Information System & ManagementUploaded byHaery Sihombing
- ALTERNATIVES & RANDOMNESS - In LifeUploaded byHaery Sihombing

- Facilidades_administrativasUploaded bymiikiies
- Indian Audit in an IndependentUploaded byHeraldWilson
- Prediction of Closing Prices on the Stock Exchange With the Use of Artificial Neural NetworksUploaded bytetazas
- OR2009 Cap 4 Ejemplo 12Uploaded byLinda At
- 2009 Annual Report AXA Private EquityUploaded byGary Chan
- elsobki_e.pdfUploaded byYasser Bahaa
- How Firm Specific Factors Affect Capital StructureUploaded byMohammed Farid Fathalbab
- Expedient eUploaded byClaris Claris
- Final Project of Fin 433 (1)Uploaded byUpomaAhmed
- SOLUCIÓN PRÁCTICA.pdfUploaded byLore Sirpa M
- Financial Aspect Leafy JuiceUploaded byPrince Relox
- ejercicios finanzas 1Uploaded byVerito Guerrero
- RM 616_2003_ROFUploaded byGA HA
- Power & Electricity World Philippines 2015 Post Event ReportUploaded bydaniel.radz9010
- Reporte de Sostenibilidad APCUploaded byElement Seven
- guia para inversion china en españa deloitte_1319643084956Uploaded byMoisés CastrOporto
- ejercicio-presupuestosUploaded byKennyDGallardo
- Legg Mason - Zero Hour 2015 - Febr 2003Uploaded byagustindom5650
- Inventory Management SystemUploaded byPhaneendra Phani
- CuestionarioUploaded byGabySol
- Retake NotesUploaded byFutureMsCPA
- Financials GlossaryUploaded bySaif Al Mutairi
- Examen Final Contabilidad 5Uploaded byLUIS MORALES
- Examen Final Deontologia Profesional G2 - SoluciónUploaded byJulio César Mathews
- Efip 1 - Tp1 Adm Siglo21Uploaded bySebSeiya
- Leidraad Wet Ter Voorkoming Van Witwassen en Financieren Van Terrorisme Wwft en Sanctiewet Sw 21Uploaded byMarco van Pijkeren
- Plan_de_Trading.pdfUploaded bycf_nunki
- Renta de cuarta categoria sunatUploaded byFabiola Martinez Munayco
- Adv Dis TableUploaded byramberg
- KHAN Micro Insurance Project 1Uploaded by9966277994