Capital Budgeting Flashcards
1
Q
Inflation consistency
A
Either use real cf and real discount rate or both nominal
2
Q
FCF
A
OCF + WCCF + Investement CF (-investment or + disposal)
3
Q
Capital Gains Tax
A
t(SV - BV)
+ CF when SV>BV
4
Q
EBIT
A
+Sale Revenue
- COGS
- Operating Costs
- Deprec. and Amt.
5
Q
OCF
A
+EBIT
-Tax
+Dep. Amt.
or
EBIT(1-t) + Amt. Dep.
6
Q
Working Capital
A
Accounts Receivable + Inventory -Accounts payable
7
Q
WC CF
A
- Change WC
8
Q
CF from investments
A
- CAPEX
or
(-io a 0, +venta al final, +cap gains tax al final)
9
Q
CAPEX españa
A
Cambio AF neto + Amt. t
o
Cambio AF bruto
10
Q
Tax shield
A
Depreciation. amt. * t
11
Q
Straight line dep.
A
(Begining BV - Estimated SV) / n years
12
Q
MACRS dep.
A
Tabla dependiente de n años,
x% del begining BV cada año
13
Q
Real Discount rate
A
((1+Nominal DR)/(1+IR)) -1
14
Q
Real CF n
A
Nominal CF n / (1+IR)^n
15
Q
VAN (NPV)
A
CF1/(1+i) + CF2(1+i)^2 … + CFn/(1+i)^n
