管理会计chapter12

1、Chap12 Screening decisions. Does a proposed project meet some present standard of acceptance?Preference decisions. Selecting from among several competing courses of action. 筛选决策：Screening decisions（一）净现值法！NPV!(Total-cost approach &Incrementalcost approach) 1. 折现率（discount rate）至少大于：存款利率、贷款利率、大于等

2、于公司资本成本分配率。2. 复利现值公式： 其中1/(1+i)n是复利现值系数（factor）。i为利率/折现率，n为年数。 年金现值公式： K为年金现值系数（factor），PMT为payment计算NPV 时 大于等于0可以接受！1.先算出annual net cash flow 2.注意是负数项！upgrading of equipment-设备升级 Relining equipment 更换设备 ！ 3. in 2 years-在第二年！4.最后别忘加上working capital released 3. Incremental 和total 决策是否接受？Alternative A

3、B两者比较?E.g: Lester Company has been offered a five year contract to provide component parts for a large manufacturer.At the end of five years, the working capital will be released and may be used elsewhere by Lester.Lester Company uses a discount rate of 10%.Should the contract be accepted?Answer:Ann

4、ual net cash flow from operations= 750,000-400,000-270,000= 80,000ItemYearsCash flow 10% Factor Present value Investment in equipmentNow(160,000)1(160,000)Working capital needed Now (100,000)1(100,000)Relining of equipment 3(30,000)0.751(22,530)Salvage value if equipment 55,0000.6213,105Annual net c

5、ash inflows 1-580,0003.791303,280Working capital released 5100,0000.62162100Net present value85955Accept the contract because the project has a positive net present value.E.g: Denny Associates has been offered a four-year contract to supply the computing requirements for a local bankThe working capi

6、tal is released at the end of the contract.Denny Associates requires a 14% return. -What is the net present value of the contract with the local bank? =148,897.554a. $150,000b. $ 28,230c. $ 92,340d. $132,916E.g: White Co. uses a discount rate of 10%.New Old Annual revenues90,00070,000Annual cash ope

7、rating costs 30,00025,000Net annual cash inflows 60,00045,000It has two alternatives. You should decide which one to choose. (1) install a new equip Cost : 300,000. Productive value : 10 years . Salvage value : 7,000. Replace brushes in 6 years : 50,000Salvage of old equip: 40,000(2) remodel: (10 ye

8、ars)Remodel cost: 175,000 . replace brushes in 6 year:80,000.Answer-Total cost approach Year Cash flow 10% factorPresent value Equipment investment Now (300,000)1(300,000)Salvage of old equipmentNow 40,0001Salvage value of (new equip)107,0000.386Replace brushes 6(50,000)0.564(28,200)Net annual cash

9、inflows 110 60,0006.145Net present value 832021). Replace Produce a Positive NPV of 832022）Remodel 10%factor Present valueRemodel expenses Now (175,000)1Replace expenses6(80,000)Net annual cash inflows 11045,000Net present value 56405Produce a positive net present value of $56,405.3) NPVInvest in ne

10、w equip83202Remodel 56405In favor of the new equip 26797 Both projects yield a positive net present value. Investing in the new washer will produce a higher net present value than remodeling the old washer.Answer-Incremental cost approach -数值是b-a得来的，但是括号是现金流入流出看的！1) replace new equip Year Cash flow

11、10% factor Present value Incremental net cash inflows 110 15,000Incremental investment Now (125,000)Incremental cost of brushes 630,000Salvage of old equip Now 40,000Salvage of new equip107,000Net present value E.g:Consider the following alternative projects. Each project would last for five years.P

12、roject AProject B Initial investment$80,000$60,000 Annual net cash inflows20,00016,000 Salvage value10,0008,000The company uses a discount rate of 14% to evaluate projects. Which of the following statements is true?a. NPV of Project A > NPV of Project B by $5,230b. NPV of Project B > NPV of Pr

13、oject A by $5,230c. NPV of Project A > NPV of Project B by $2,000d. NPV of Project B > NPV of Project A by $2,000Choose A over BYear Cash flows 14% factor Present value Incremental initial investment Now (20,000)1(20,000)Incremental annual net cash inflow 154,0003.43313,732Incremental salvage

14、value52,0000.5191038Incremental Net present value(5230)所以B（2） 最小成本法!Least Cost Decisions- -两个方案没告诉revenue 时，选成本NPV小的那个。E.g:Home Furniture Company is trying to decide whether to overhaul检修 an old delivery truck now or purchase a new one. The company uses a discount rate of 10%, 5years Old Year Cash f

15、low New Year Cash flow Overhaul cost Now （4,500）Purchase price Now （21,000)Annual operating costs15(10,000)Annual operating costs 15(6,000)Salvage value of old truck Now 9,000Salvage value of old truck 5250Salvage value of new truck 53,000Answer: Purchase new truck Year Cash flow 10% factor Present

16、value Incremental initial cost Now (16,500)1（16,500）Incremental salvage of old truckNow 9,00019,000Incremental annual operating costs15(4,000)3.791(15,160)Incremental salvage of truck 53000-2500.6211707.75NPV(-20952.25)Cost for b is 3029.12 more than a .choose should purchase the new truck.二、偏好决策-The Ranking of Investment Projects。忽略货币时间价值-PPIInternal Rate of Return Method (IRR)-The higher the internal rate of return, the more desirable the project.1.2. Determine thepayback periodfor an investment.分子加折旧。分母减残值When the cash flows associated wi