财务成本管理英语045792.docx

《财务成本管理英语045792.docx》由会员分享，可在线阅读，更多相关《财务成本管理英语045792.docx（14页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、2008年注册会计师考试辅导财务成本管理英语 INVESTMENT APPRAISAL对应中文教材2008年财务成本管理第五章:投资管理A.ROCE（已动用资本回报率）or ARR（会计收益率）（Accounting Rate of Return）B.PPaybbackk（回收收期法）Payback period=Initial payment/Annual cash inflow, payback is not always an exact number of yearsMost common formula:ROCE=EBIT （after depreciation）/ initial

2、capital costsC NNPV（净净现值法法）（1） Bassic asssumpptioons:cassh ooutllay occcurss inn yeear 0 （nnow）.cassh fflowws ooccuur aat tthe endd off thhe yyearr.iff a cassh ffloww occcurrs aat tthe begginnningg off a yeaar, it is asssumeed tto ooccuur aat tthe endd off thhe pprevviouus yyearr.D IIRR（内内含报酬酬率法）（1）

3、BBasiic pprinncipple: IRRR iis tthe cosst oof ccapiitall att whhichh thhe NNPV is zerro, if thee exxpecctedd IRRR iis hhighher thaan aa taargeet rratee off reeturrn; thee prrojeect is finnancciallly worrth undderttakiing.（2）SSeleectiion bettweeen IIRR andd NPPV: wheen aa chhoicce hhas to be madde bb

4、etwweenn muutuaallyy exxcluusivve pprojjectts, in succh ccasee thhe NNPV shoouldd bee seelecctedd, bbecaausee hiigheer NNPV cann maaximmizee shhareehollderrs weaalthh.DeffiniitioonThee diiscoountt raat wwhicch, wheen aapplliedd too thhe ccashh fllowss off a proojecct, givves an NPVV off zeero.OOrThe

5、e brreakk-evven inttereest ratte ffor a pprojjectt.It is thee maaximmum ratte oof iinteeresst tthatt yoou ccoulld aaffoord to payy onn a proojecct wwithhoutt maakinng aa looss.FFeattureesAdvvanttagees -Takkes intto aaccoountt thhe ttimee vaaluee off mooneyy-Rellatiive meaasurre-Moore reaadilly uunde

6、ersttoodd thhan NPVVDDisaadvaantaagess -MMay nott bee unniquue prrojeectss caan hhavee moore thaan oone IRRR- Maay rrankk prrojeectss inncorrrecctlyy forr muutuaallyy exxcluusivve pprojjectts oor wwhennFFundds aare shoort suppplyy- Caannoot ccopee wiith chaangiing rattes of inttereestThee meethood o

7、of ccalcculaatioon ddepeendss uppon wheetheer oor nnot thee prrojeect hass evven cassh fflowws.Evven cassh fflowwsConnsidder an invvesttmennt oof 39.93mm thhat genneraatess neet ccashh eaarniingss off 110m forr 5 yeaarsThhe IIRR is thee diiscoountt raate thaat ggivees aa NPPV oof zzeroo. TThiss meea

8、nss thhat thee IRRR iis ttheRaate thaat wwilll diiscoountt fiive insstalllmeentss off 110m to a ppressentt vaaluee off 339.993. Thiis iin tturnnMMeanns tthatt thhe IIRR is thee diiscoountt raate forr whhichh thhe 55yeaar aannuuityy faactoor iis 33.9993. AThee prrojeects IIRR hass beeen fouund viaa a

9、 cummulaativve ddisccounnt ffacttor （annnuiity facctorr） ggiveenBy: AAnnuuityy faactoorat thee IRRR=ffor thee liife of thee prrojeectUnneveen ccashh fllowssTThesse hhavee too bee fooundd byy trriall annd eerroor oor bby eestiimattingg ussingg twwo ppressentt vaaluees.Wheere:A=lloweer rratee chhoseen

10、=NNPV at ratte AABB=hiigheer rratee=NPPV aat rratee BItt heelpss too geet AA annd BB ass cllosee too thhe ttruee IRRR aas pposssiblle, butt itt dooesnnt mattterr whhethherthhe rresuultaant NPVVs aare possitiive, neegattivee orr onne oof eeachh.Somme sstuddentts ppreffer to usee a commmonn seensee ap

11、pprooachh raatheer tthann a forrmulla. Seeeingg byy noowMucch NNPV hass faalleen （ffrommto） as thee diiscoountt raate hass riisenn frrom A tto BB,Theey ffindd hoow mmuchh moore thee diiscoountt raate neeeds to risse tto bbrinng tthe NPVV too zeero.WWhettherr thhe fformmulaa iss ussed or commmonn see

12、nsee, tthe callcullatiion asssumees aa liineaar rrelaatioonshhipBeetweeen NPVV annd ddisccounnt rratee. IIn ffactt thhe rrelaatioonshhip is nott liineaar, hennce thee caalcuulattionnIIs oonlyy appprooximmatee annd （uunleess youu haave beeen lluckky wwhenn guuesssingg whhichh diiscoountt raatess toou

13、use） youu shhoulld nnot quoote IRRRs callcullateed iin tthiss waay tto mmanyy, nnot to anyy,deecimmal plaacess unnlesss tthe exaaminner askks yyou.IIRR of a pperppetuuityyTThe preesennt vvaluue oof aa peerpeetuiity is thee annnuaal ccashh fllow divvideed bby tthe disscouunt ratte（exxpreesseed aas aa

14、 deecimmal. Frrom thiis iit ffolllowss thhat:tthe IRRR off a perrpettuitty =1000Perrpettuitty: 永续年年金Metthodd off prreseentaatioonA ssimpple callcullatiion succh aas tthosse ffor Wooods cann bee doone on a ssinggle linne. Forr laargeer pprojjecttstwoo poossiibillitiies exiist:（ii） tthe cassh bbudgget

15、 appproaach（iii） thee taabullar appproaach.（11）Caash buddgett appprooachhTTimee0012330000000000000000Invvesttmennt（XX） XAdvverttisiing （XX） （X） -Woorkiing cappitaal （XX） -XMaaterrialls （XX） （X） （X） -Labbourr （XX） （XX） （XX）Oveerheeadss （X） （X） （X）Revenue X Net cash flow （X） （X） （X） X y% Discount fact

16、or1 X X XPresent value （X） （X） （X） XNet present value （000）XThe cash budget approach is suitable for short projects with lots of different cash flowsWhich change from year to year.（2） Tabular approachTimeCash flowy% DiscountPresent value0000000000Investment（X）1（X）0and 1 Advertising （X）X（X）0Working c

17、apital （X）1（X）0-9Materials （X）1（X）1-10Labour and overheads （X）X（X）1-10Revenue X XX10Sales proceedsX XX10WC recovery X XXNet present value （000）XThe tabular approach is suitable for long projects with lots of different cash flows that areThe same from year to year （enabling annuity factors to be used

18、）.Picking the right figuresWhen carrying out discounted cash flow analysis it is important to select the right figures.Ignore:1.Sunk costs amounts that have already been spent2.Depreciation not a cash flow3.Book values not a cash flow4.Nonincremental fixed costs （look out for the words “reapportione

19、d fixed overheads”）5.Interest costs taken into account by the discounting processInclude:Those cash flows that are specifically received or incurred as a result of the acceptance of the project（futureincrementalcash flows）.Asset replacement decisionFactors to be considered when making replacement de

20、cision are as follows:capital cost of new equipment;operating costs, increased repair and maintenance costs;loss of productivity;lower of quality and quantity of output;Onee apppliicattionn off diiscoountted cassh ffloww iss too maake deccisiionss coonceerneed wwithh thhe rrepllaceemennt oofMacchinn

21、eryy. TThiss apppliies to shoort llifee asssetts tthatt wiill neeed tto bbe rrepllaceed iin pperppetuuityy （ee.g. mootorrCCarss orr phhotoocoppierrs）. Ass a macchinne ggetss ollderr, iit iis llikeely to cosst mmoree too keeep it runnninng aand itssSScraap vvaluue wwilll deecreeasee. TThe aimm iss to

22、o fiind thee opptimmal repplaccemeent cyccle forr thhe mmachhinee,i.ee. hhow oftten it shoouldd bee reeplaacedd befforee itt beecommes uneeconnomiic tto oown.AA siimplle aapprroacch wwoulld iinvoolvee fiindiing thee tootall coost of keeepinng aan aasseet ffor 1,22,3 yeaars, ettc,Thhen finndinng aan

23、aaverragee annnuaal ccostt.DCCF VVerssionnNNow, eaach posssibble repplaccemeent cyccle is treeateed aas aa prrojeect （1-yeaar, 2-yyearr, oor 33-yeear proojecct）.YYou callcullatee thhe NNPV of eacch pprojjectt （rrathher thaan jjustt thhe ttotaal ccostt）.Innsteead of divvidiing thee NPPVss byy 1,2,oor 33, ttheyyree diividded by thee 1,2, or 3-yyearr annnuiity facctorrTTo ffindd ann eqquivvaleent annnuall coost.EEquiivallentt annnuaal ccostt = 第14页