Fundamentals of Financial Management, 11/e Chapter 12: Capital Budgeting and Estimating Cash Flows

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Fundamentals of Financial Management, 11/e

Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 1 Carroll College, Waukesha, WI

2-1
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 1 Carroll College, Waukesha, WI

2-2
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 2 Carroll College, Waukesha, WI

2-3
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 3 Carroll College, Waukesha, WI

2-4
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 4 Carroll College, Waukesha, WI

2-5
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 5 Carroll College, Waukesha, WI

2-6
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 6 Carroll College, Waukesha, WI

2-7
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 7 Carroll College, Waukesha, WI

2-8
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 8 Carroll College, Waukesha, WI

2-9
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 9 Carroll College, Waukesha, WI

2-10
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 10 Carroll College, Waukesha, WI

2-11
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 11 Carroll College, Waukesha, WI

2-12
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 12 Carroll College, Waukesha, WI

2-13
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 13 Carroll College, Waukesha, WI

2-14
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 14 Carroll College, Waukesha, WI

2-15
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 15 Carroll College, Waukesha, WI

2-16
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 16 Carroll College, Waukesha, WI

2-17
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 17 Carroll College, Waukesha, WI

2-18
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 18 Carroll College, Waukesha, WI

2-19
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 19 Carroll College, Waukesha, WI

2-20
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 20 Carroll College, Waukesha, WI

2-21
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 21 Carroll College, Waukesha, WI

2-22
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 22 Carroll College, Waukesha, WI

2-23
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 23 Carroll College, Waukesha, WI

2-24
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 24 Carroll College, Waukesha, WI

2-25
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 25 Carroll College, Waukesha, WI

2-26
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 26 Carroll College, Waukesha, WI

2-27
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 27 Carroll College, Waukesha, WI

2-28
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 28 Carroll College, Waukesha, WI

2-29
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 29 Carroll College, Waukesha, WI

2-30
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 30 Carroll College, Waukesha, WI

2-31
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 31 Carroll College, Waukesha, WI

2-32
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 32 Carroll College, Waukesha, WI

2-33
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 33 Carroll College, Waukesha, WI

2-34
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 34 Carroll College, Waukesha, WI

2-35
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 35 Carroll College, Waukesha, WI

2-36
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 36 Carroll College, Waukesha, WI

2-37
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 37 Carroll College, Waukesha, WI

2-38
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 38 Carroll College, Waukesha, WI

2-39
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 39 Carroll College, Waukesha, WI

2-40
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 40 Carroll College, Waukesha, WI

2-41
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 41 Carroll College, Waukesha, WI

2-42
Fundamentals of Financial Management, 11/e
Chapter 12: Capital Budgeting and Estimating Cash Flows

Van Horne & Wachowicz, by Gregory A. Kuhlemeyer, Ph.D.,


© 2001 Prentice-Hall, Inc.
XII - 42 Carroll College, Waukesha, WI

2-43

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