12/9 Chapter 19 Flashcards
1
Q
two main models of budgeting
A
discount factor: NPV IRR non discount models: Payback period Accounting Rate of Return
2
Q
payback period formula
A
investment/CF
3
Q
accounting rate of return
A
incremental(Actual)NI/Investment
4
Q
NPV
A
discounted value of all of our future cash flows,
most of the time is superior
5
Q
annuity
A
on the annuity table, stays constant
6
Q
IRR
A
where we set the NPV equal to 0
7
Q
depreciation
A
look at the tax implications of that
