Principles of Managerial Finance

382 PART 3 Long-Term Investment Decisions LG3 LG3 LG3 than the after-tax proceeds expected from the old machine had it been reta ...

CHAPTER 8 Capital Budgeting Cash Flows 383 LG4 LG4 LG4 a. Covol would be able to use the same tooling, which had a book value of ...

384 PART 3 Long-Term Investment Decisions LG4 LG4 LG4 LG4 8–10 Change in net working capital calculation Samuels Manufacturing i ...

CHAPTER 8 Capital Budgeting Cash Flows 385 LG5 LG5 LG4 chased 3 years ago for an installed cost of $10,000. The firm is deprecia ...

386 PART 3 Long-Term Investment Decisions LG5 LG5 LG5 amount to 40% of the additional sales. The firm has an ordinary tax rate o ...

CHAPTER 8 Capital Budgeting Cash Flows 387 LG6 LG6 costs. The total cost for 10 new buses is $3,000,000. Like the older buses, t ...

388 PART 3 Long-Term Investment Decisions LG4 LG5 LG6 LG4 LG5 8–22 Relevant cash flows for a marketing campaign Marcus Tube, a m ...

CHAPTER 8 Capital Budgeting Cash Flows 389 LG4 LG5 LG6 a. Calculate the initial investment associated with replacement of the ol ...

390 PART 3 Long-Term Investment Decisions LG4 LG5 LG6 a. Calculate the initial investment associated with the replacement of the ...

CHAPTER 8 Capital Budgeting Cash Flows 391 CHAPTER 8 CASE Developing Relevant Cash Flows for Clark Upholstery Company’s Machine ...

392 PART 3 Long-Term Investment Decisions WW W year recovery period. The firm’s projected revenues and expenses (excluding depre ...

CHAPTER 8 Capital Budgeting Cash Flows 393 Remember to check the book’s Web site at http://www.aw.com/gitman for additional reso ...

LEARNING GOALS 394 CAPITAL BUDGETING TECHNIQUES CHAPTER Across the Disciplines WHY THIS CHAPTER MATTERS TO YOU Accounting:You ne ...

395 H ave you ever been stuck at an airport because your flight was late and you missed your connection? You were frus- trated b ...

For simplification, these 5-year-lived projects with 5 years of cash inflows are used throughout this chapter. Proj- ects with ...

CHAPTER 9 Capital Budgeting Techniques 397 payback period The amount of time required for a firm to recover its initial invest- ...

398 PART 3 Long-Term Investment Decisions Hint The payback period indicates to firms taking on projects of high risk how quickly ...

CHAPTER 9 Capital Budgeting Techniques 399 To consider differences in timing explicitlyin applying the payback method, the pres ...

400 PART 3 Long-Term Investment Decisions In Practice The high labor component of U.S. textile manufacturers creates a cost disa ...

CHAPTER 9 Capital Budgeting Techniques 401 net present value (NPV) A sophisticated capital budget- ing technique; found by subtr ...