Principles of Corporate Finance_ 12th Edition

● ● ● bre44380_ch06_132-161.indd 132 09/30/15 12:46 PM 132 Part 1 Value CHAPTER 6 Making Investment Decisions with the Net Prese ...

bre44380_ch06_132-161.indd 133 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 133 Expen ...

bre44380_ch06_132-161.indd 134 09/30/15 12:46 PM 134 Part One Value need to add back depreciation (which is not a cash outflow) ...

bre44380_ch06_132-161.indd 135 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 135 but n ...

bre44380_ch06_132-161.indd 136 09/30/15 12:46 PM 136 Part One Value sales of Sony’s existing consoles. This incidental effect ne ...

bre44380_ch06_132-161.indd 137 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 137 Somet ...

bre44380_ch06_132-161.indd 138 09/30/15 12:46 PM 138 Part One Value Suppose your firm usually forecasts cash flows in nominal te ...

bre44380_ch06_132-161.indd 139 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 139 6-2 E ...

bre44380_ch06_132-161.indd 140 09/30/15 12:46 PM 140 Part One Value Table  6.2 derives cash-flow forecasts from the investment a ...

bre44380_ch06_132-161.indd 141 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 141 IM&am ...

bre44380_ch06_132-161.indd 142 09/30/15 12:46 PM 142 Part One Value If you replace each year’s sales with that year’s cash paym ...

bre44380_ch06_132-161.indd 143 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 143 Table ...

bre44380_ch06_132-161.indd 144 09/30/15 12:46 PM 144 Part One Value A Final Comment on Taxes All large U.S. corporations keep tw ...

bre44380_ch06_132-161.indd 145 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 145 chemi ...

bre44380_ch06_132-161.indd 146 09/30/15 12:46 PM 146 Part One Value Notice that KGR’s depreciation deduction declines for the fi ...

bre44380_ch06_132-161.indd 147 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 147 Let u ...

bre44380_ch06_132-161.indd 148 09/30/15 12:46 PM 148 Part One Value Because the two machines produce exactly the same product, t ...

bre44380_ch06_132-161.indd 149 09/30/15 12:46 PM Chapter 6 Making Investment Decisions with the Net Present Value Rule 149 Equiv ...

bre44380_ch06_132-161.indd 150 09/30/15 12:46 PM 150 Part One Value Equivalent Annual Cash Flow and Taxes We have not mentioned ...

bre44380_ch06_132-161.indd 151 09/30/15 12:46 PM By now present value calculations should be a matter of routine. However, forec ...