finance教案资料

1、Good is good, but better carries it.精益求精，善益求善。finance-8.1PaybackPeriodandNetPresentValue.Ifaprojectwithconventionalcashflowshasapaybackperiodlessthanitslife,canyoudefinitivelystatethealgebraicsignoftheNPV?Whyorwhynot?Answer:ApaybackperiodlessthantheprojectslifemeansthattheNPVispositiveforazerodiscou

2、ntrate,butnothingmoredefinitivecanbesaid.Fordiscountratesgreaterthanzero,thepaybackperiodwillstillbelessthantheprojectslife,buttheNPVmaybepositive,zero,ornegative,dependingonwhetherthediscountrateislessthan,equalto,orgreaterthantheIRR.8.2.NetPresentValue.Supposeaprojecthasconventionalcashflowsandapo

3、sitiveNPV.Whatdoyouknowaboutitspayback?Itsprofitabilityindex?ItsIRR?Explain.Answer：IfaprojecthasapositiveNPVforacertaindiscountrate,thenitwillalsohaveapositiveNPVforazerodiscountrate;thusthepaybackperiodmustbelessthantheprojectlife.IfNPVispositive,thenthepresentvalueoffuturecashinflowsisgreaterthant

4、heinitialinvestmentcost;thusPImustbegreaterthan1.IfNPVispositiveforacertaindiscountrateR,thenitwillbezeroforsomelargerdiscountrateR*;thustheIRRmustbegreaterthantherequiredreturn.8.3PaybackPeriod.Concerningpayback:a.Describehowthepaybackperiodiscalculatedanddescribetheinformationthismeasureprovidesab

5、outasequenceofcashflows.Whatisthepaybackcriteriondecisionrule?b.Whataretheproblemsassociatedwithusingthepaybackperiodasameansofevaluatingcashflows?c.Whataretheadvantagesofusingthepaybackperiodtoevaluatecashflows?Arethereanycircumstanceunderwhichusingpaybackmightbeappropriate?Explain.Answer:a.Payback

6、periodissimplythebreak-evenpointofaseriesofcashflows.Toactuallycomputethepaybackperiod,itisassumedthatanycashflowoccurringduringagivenperiodisrealized公司金融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-2continuouslythroughouttheperiod,andnotatasinglepointintime.Thepaybackisthenthep

7、ointintimefortheseriesofcashflowswhentheinitialcashoutlaysarefullyrecovered.Givensomepredeterminedcutoffforthepaybackperiod,thedecisionruleistoacceptprojectsthatpaybackbeforethiscutoff,andrejectprojectsthattakelongertopayback.b.Theworstproblemassociatedwithpaybackperiodisthatitignoresthetimevalueofm

8、oney.Inaddition,theselectionofahurdlepointforpaybackperiodisanarbitraryexercisethatlacksanysteadfastruleormethod.Thepaybackperiodisbiasedtowardsshort-termprojects;itfullyignoresanycashflowsthatoccurafterthecutoffpoint.c.Despiteitsshortcomings,paybackisoftenusedbecause(1)theanalysisisstraightforwarda

9、ndsimpleand(2)accountingnumbersandestimatesarereadilyavailable.Materialityconsider-actionsoftenwarrantapaybackanalysisassufficient;maintenanceprojectsareanotherexamplewherethedetailedanalysisofothermethodsisoftennotneeded.Sincepaybackisbiasedtowardsliquidity,itmaybeausefulandappropriateanalysismetho

10、dforshort-termprojectswherecashmanagementismostimportant.8.4AverageAccountingReturn.ConcerningAAR:a.Describehowtheaverageaccountingreturnisusuallycalculatedanddescribetheinformationthismeasureprovidesaboutasequenceofcashflows.WhatistheAARcriteriondecisionrule?b.Whataretheproblemsassociatedwithusingt

11、heAARasameansofevaluatingaprojectscashflows?WhatunderlyingfeatureofAARismosttroublingtoyoufromafinancialperspective?DoestheAARhaveanyredeemingqualities?Answer:a.Theaverageaccountingreturnisinterpretedasanaveragemeasureoftheaccountingperformanceofaprojectovertime,computedassomeaverageprofitmeasuredue

12、totheprojectdividedbysomeaveragebalancesheetvaluefortheproject.ThistextcomputesAARasaveragenetincomewithrespecttoaverage(total)bookvalue.GivensomepredeterminedcutoffforAAR,thedecisionruleistoacceptprojectswithanAARinexcessofthetargetmeasure,andrejectallotherprojects.b.AARisnotameasureofcashflowsandm

13、arketvalue,butameasureoffinancialstatementaccountsthatoftenbearlittlesemblancetotherelevantvalueofaproject.Inaddition,theselectionofacutoffisarbitrary,andthetimevalueofmoneyisignored.Forafinancialmanager,boththerelianceonaccountingnumbersratherthanrelevantmarketdataandtheexclusionoftimevalueofmoneyc

14、onsiderationsaretroubling.Despitetheseproblems,AARcontinuestobeusedinpracticebecause(1)theaccountinginformationisusuallyavailable,(2)analystsoftenuseaccountingratiostoanalyzefirmperformance,and(3)managerialcompensationisoftentiedtotheattainmentofcertaintargetaccountingratiogoals.公司金融校级精品课程（双语类）章后习题C

15、HAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-38.5NetPresentValue.ConcerningNPV:a.DescribehowNPViscalculatedanddescribetheinformationthismeasureprovidesaboutasequenceofcashflows.WhatistheNPVcriteriondecisionrule?b.WhyisNPVconsideredtobeasuperiormethodofevaluationthecashflowsfromproject?Supposeth

16、eNPVforaprojectscashflowsiscomputedtobe$2,500.Whatdoesthisnumberrepresentwithrespecttothefirmsshareholders?Answer:a.NPVissimplythesumofthepresentvaluesofaprojectscashflows.NPVspecificallymeasures,afterconsideringthetimevalueofmoney,thenetincreaseordecreaseinfirmwealthduetotheproject.Thedecisionrulei

17、stoacceptprojectsthathaveapositiveNPV,andrejectprojectswithanegativeNPV.b.NPVissuperiortotheothermethodsofanalysispresentedinthetextbecauseithasnoseriousflaws.Themethodunambiguouslyranksmutuallyexclusiveprojects,andcandifferentiatebetweenprojectsofdifferentscaleandtimehorizon.TheonlydrawbacktoNPVist

18、hatitreliesoncashflowanddiscountratevaluesthatareoftenestimatesandnotcertain,butthisisaproblemsharedbytheotherperformancecriteriaaswell.AprojectwithNPV=$2,500impliesthatthetotalshareholderwealthofthefirmwillincreaseby$2,500iftheprojectisaccepted.8.6InternalRateofReturn.ConcerningIRR:a.DescribehowNPV

19、iscalculatedanddescribetheinformationthismeasureprovidesaboutasequenceofcashflows.WhatistheNPVcriteriondecisionrule?b.WhatisrelationshipbetweenIRRandNPV?Arethereanysituationinwhichyoumightpreferonemethodovertheother?Why?c.Despiteitsshortcomingsinsomesituations,whydomostfinancialmanagersuseIRRalongwi

20、thNPVwhenevaluatingprojects?CanyouthinkofasituationinwhichIRRmightbeamoreappropriatemeasuretousethanNPV?Explain.Answer:a.TheIRRisthediscountratethatcausestheNPVofaseriesofcashflowstobeequaltozero.IRRcanthusbeinterpretedasafinancialbreak-evenrateofreturn;attheIRRdiscountrate,thenetvalueoftheprojectis

21、zero.TheIRRdecisionruleistoacceptprojectswithIRRsgreaterthanthediscountrate,andtorejectprojectswithIRRslessthanthediscountrate.b.IRRistheinterestratethatcausesNPVforaseriesofcashflowstobezero.NPVispreferredinallsituationstoIRR;IRRcanleadtoambiguousresultsiftherearenon-conventionalcashflows,andalsoam

22、biguouslyrankssomemutuallyexclusiveprojects.However,forstand-aloneprojectswithconventionalcashflows,IRRandNPVareinterchangeabletechniques.c.IRRisfrequentlyusedbecauseitiseasierformanyfinancialmanagersandanalyststorateperformanceinrelativeterms,suchas“12%”,thaninabsoluteterms,suchas“$46,000.”IRR公司金融校

23、级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-4maybeapreferredmethodtoNPVinsituationswhereanappropriatediscountrateisunknownoruncertain;inthissituation,IRRwouldprovidemoreinformationabouttheprojectthanwouldNPV.8.7ProfitabilityIndex.Concerningtheprofitabilityindex:a.Describehowthep

24、rofitabilityindexiscalculatedanddescribetheinformationthismeasureprovidesaboutasequenceofcashflows.Whatistheprofitabilityindexdecisionrule?b.WhatistherelationshipbetweentheprofitabilityindexandtheNPV?Arethereanysituationsinwhichyoumightpreferonemethodovertheother?Explain.Answer:a.Theprofitabilityind

25、existhepresentvalueofcashinflowsrelativetotheprojectcost.Assuch,itisabenefit/costratio,providingameasureoftherelativeprofitabilityofaproject.TheprofitabilityindexdecisionruleistoacceptprojectswithaPIgreaterthanone,andtorejectprojectswithaPIlessthanone.b.PI=(NPV+cost)/cost=1+(NPV/cost).Ifafirmhasabas

26、ketofpositiveNPVprojectsandissubjecttocapitalrationing,PImayprovideagoodrankingmeasureoftheprojects,indicatingthe“bangforthebuck”ofeachparticularproject.8.8PaybackandInternalRateofReturn.AprojecthasperpetualcashflowsofCperperiod,acostofI,andarequiredreturnofR.Whatistherelationshipbetweentheprojectsp

27、aybackanditsIRR?Whatimplicationsdoesyouranswerhaveforlong-livedprojectswithrelativelyconstantcashflows?Answer:Foraprojectwithfuturecashflowsthatareanannuity:Payback=I/CAndtheIRRis:0=I+C/IRRSolvingtheIRRequationforIRR,weget:IRR=C/INoticethisisjustthereciprocalofthepayback.So:IRR=1/PaybackForlong-live

28、dprojectswithrelativelyconstantcashflows,thesoonertheprojectpaysback,thegreateristheIRR.8.9InternationalInvestmentProjects.InNovember2004,automobilemanufacturerHondaannouncedplanstobuildanautomatictransmissionplantinGeorgiaandexpanditstransmissionplantinOhio.Hondaapparentlyfeltthatitwouldbebetter公司金

29、融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-5abletocompeteandcreatevaluewithU.S.-basedfacilities.OthercompaniessuchasFujiFirmandSwisschemicalcompanyLonzahavereachedsimilarconclusionsandtakensimilaractions.Whataresomeofthereasonsthatforeignmanufacturersofproductsasdiverseasauto

30、mobiles,film,andchemicalsmightarriveatthissameconclusion.Answer:Thereareanumberofreasons.Twoofthemostimportanthavetodowithtransportationcostsandexchangerates.ManufacturingintheU.S.placesthefinishedproductmuchclosertothepointofsale,resultinginsignificantsavingsintransportationcosts.Italsoreducesinven

31、toriesbecausegoodsspendlesstimeintransit.Higherlaborcoststendtooffsetthesesavingstosomedegree,atleastcomparedtootherpossiblemanufacturinglocations.OfgreatimportanceisthefactthatmanufacturingintheU.S.meansthatamuchhigherproportionofthecostsarepaidindollars.Sincesalesareindollars,theneteffectistoimmun

32、izeprofitstoalargeextentagainstfluctuationsinexchangerates.Thisissueisdiscussedingreaterdetailinthechapteroninternationalfinance.8.10CapitalBudgetingProblems.Whataresomeofthedifficultiesthatmightcomeupinactualapplicationsofthevariouscriteriawediscussedinthischapter?Whichonewouldbetheeasiesttoimpleme

33、ntinactualapplications?Themostdifficult?Answer:Thesinglebiggestdifficulty,byfar,iscomingupwithreliablecashflowestimates.Determininganappropriatediscountrateisalsonotasimpletask.Theseissuesarediscussedingreaterdepthinthenextseveralchapters.Thepaybackapproachisprobablythesimplest,followedbytheAAR,bute

34、ventheserequirerevenueandcostprojections.Thediscountedcashflowmeasures(NPV,IRR,andprofitabilityindex)arereallyonlyslightlymoredifficultinpractice.8.11CapitalBudgetinginNot-for-ProfitEntities.Arethecapitalbudgetingcriteriawediscussedapplicabletonot-for-profitcorporations?Howshouldsuchentitiesmakecapi

35、talbudgetingdecisions?WhatabouttheU.S.Government?Shoulditevaluatespendingproposalsusingthesetechniques?Answer:Yes,theyare.Suchentitiesgenerallyneedtoallocateavailablecapitalefficiently,justasfor-profitsdo.However,itisfrequentlythecasethatthe“revenues”fromnot-for-profitventuresarenottangible.Forexamp

36、le,charitablegivinghasrealopportunitycosts,butthebenefitsaregenerallyhardtomeasure.Totheextentthatbenefitsaremeasurable,thequestionofanappropriaterequired公司金融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-6returnremains.Paybackrulesarecommonlyusedinsuchcases.Finally,realisticcost/

37、benefitanalysisalongthelinesindicatedshoulddefinitelybeusedbytheU.S.governmentandwouldgoalongwaytowardbalancingthebudget!8.12InternalRateofReturn.Inapreviouschapter,wediscussedtheyieldtomaturity(YTM)ofabond.InwhatwaysaretheIRRandtheYTMsimilar?Howaretheydifferent?Answer:Theyieldtomaturityistheinterna

38、lrateofreturnonabond.ThetwoconceptsareidenticalwiththeexceptionthatYTMisappliedtobondsandIRRisappliedtocapitalbudgeting.8.13ModifiedInternalRateofReturn.OneofthelessflatteringinterpretationsoftheacronymMIRRismeaninglessinternalrateofreturn.WhydoyouthinkthistermisappliedtoMIRR?Answer:TheMIRRiscalcula

39、tedbyfindingthepresentvalueofallcashoutflows,thefuturevalueofallcashinflowstotheendoftheproject,andthencalculatingtheIRRofthetwocashflows.Asaresult,thecashflowshavebeendiscountedorcompoundedbyoneinterestrate(therequiredreturn),andthentheinterestratebetweenthetworemainingcashflowsiscalculated.Assuch,

40、theMIRRisnotatrueinterestrate.Incontrast,considertheIRR.Ifyoutaketheinitialinvestment,andcalculatethefuturevalueattheIRR,youcanreplicatethefuturecashflowsoftheprojectexactly.8.14NetPresentValue.Itissometimesstatedthatthenetpresentvalueapproachassumesreinvestmentoftheintermediatecashflowsattherequire

41、dreturn.Isthisclaimcorrect?Toanswer,supposeyoucalculatetheNPVofaprojectintheusualway.Next,supposeyoudothefollowing:a.Calculatethefuturevalue(asoftheendoftheproject)ofallthecashflowsotherthantheinitialoutlayassumingtheyarereinvestedattherequiredreturn,producingasinglefuturevaluefigurefortheproject.b.

42、CalculatetheNPVoftheprojectusingthesinglefuturevaluecalculatedinthepreviousstepandtheinitialoutlay.ItiseasytoverifythatyouwillgetthesameNPVasinyouroriginalcalculationonlyifyouusetherequiredreturnasthereinvestmentrateinthepreviousstep.Answer:Thestatementisincorrect.Itistruethatifyoucalculatethefuture

43、valueofallintermediatecashflowstotheendoftheprojectattherequiredreturn,thencalculatetheNPVofthisfuturevalueandtheinitialinvestment,youwillgetthesameNPV.However,NPVsaysnothingaboutreinvestmentofintermediatecashflows.TheNPVisthepresentvalueoftheprojectcashflows.Whatisactuallydonewiththosecashflowsonce

44、theyaregeneratedisnotrelevant.Putdifferently,thevalueofaprojectdependsonthecashflowsgeneratedbytheproject,notonthefuturevalueofthosecashflows.Thefactthatthereinvestment“works”onlyifyouusetherequiredreturnasthe公司金融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-7reinvestmentrateisal

45、soirrelevantsimplybecausereinvestmentisnotrelevantinthefirstplacetothevalueoftheproject.Onecaveat:Ourdiscussionhereassumesthatthecashflowsaretrulyavailableoncetheyaregenerated,meaningthatitisuptofirmmanagementtodecidewhattodowiththecashflows.Incertaincases,theremaybearequirementthatthecashflowsberei

46、nvested.Forexample,ininternationalinvesting,acompanymayberequiredtoreinvestthecashflowsinthecountryinwhichtheyaregeneratedandnot“repatriate”themoney.Suchfundsaresaidtobe“blocked”andreinvestmentbecomesrelevantbecausethecashflowsarenottrulyavailable.8.15InternalRateofReturn.Itissometimesstatedthatthei

47、nternalrateofreturnapproachassumesreinvestmentoftheintermediatecashflowsattheinternalrateofreturn.Isthisclaimcorrect?Toanswer,supposeyoucalculatetheIRRofaprojectistheusualway.next,supposeyoudothefollowing:a.Calculatethefuturevalue(asoftheendoftheproject)ofallthecashflowsotherthantheinitialoutlayassu

48、mingtheyarereinvestedattheIRR,producingasinglefuturevaluefigurefortheproject.b.CalculatetheIRRoftheprojectusingthesinglefuturevaluecalculatedinthepreviousstepandtheinitialoutlay.ItiseasytoverifythatyouwillgetthesameIRRasinyouroriginalcalculationonlyifyouusetheIRRasthereinvestmentrateinthepreviousste

49、p.Answer:Thestatementisincorrect.ItistruethatifyoucalculatethefuturevalueofallintermediatecashflowstotheendoftheprojectattheIRR,thencalculatetheIRRofthisfuturevalueandtheinitialinvestment,youwillgetthesameIRR.However,asinthepreviousquestion,whatisdonewiththecashflowsoncetheyaregenerateddoesnotaffect

50、theIRR.Considerthefollowingexample:C0C1C2IRRProjectA$100$10$11010%Supposethis$100isadepositintoabankaccount.TheIRRofthecashflowsis10percent.DoestheIRRchangeiftheYear1cashflowisreinvestedintheaccount,orifitiswithdrawnandspentonpizza?No.Finally,considertheyieldtomaturitycalculationonabond.Ifyouthinkab

51、outit,theYTMistheIRRonthebond,butnomentionofareinvestmentassumptionforthebondcouponsissuggested.ThereasonisthatreinvestmentisirrelevanttotheYTMcalculation;inthesameway,reinvestmentisirrelevantintheIRRcalculation.Ourcaveataboutblockedfundsapplieshereaswell.SolutionstoQuestionsandProblemsBasic（Questio

52、ns1-22）公司金融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-81.CalculatingPayback.Whatisthepaybackperiodforthefollowingsetofcashflows?YearCashFlow0-$3,4001$1,2002$1,5003$9004$700Solution:Tocalculatethepaybackperiod,weneedtofindthetimethattheprojecthasrecovereditsinitialinvestment.Af

53、tertwoyears,theprojecthascreated:$1,200+1,500=$2,700incashflows.Theprojectstillneedstocreateanother:$3,4002,700=$700incashflows.Duringthethirdyear,thecashflowsfromtheprojectwillbe$900.So,thepaybackperiodwillbe2years,pluswhatwestillneedtomakedividedbywhatwewillmakeduringthethirdyear.Thepaybackperiodi

54、s:Payback=2+($700/$900)Payback=2.78years2.CalculatePayback.Aninvestmentprojectprovidescashinflowsof$760peryearforeightyears.Whatistheprojectpaybackperiodiftheinitialcostis$3,400?Whatiftheinitialcostis$4,450?Whatifitis$6,800?Solution:Tocalculatethepaybackperiod,weneedtofindthetimethattheprojecthasrec

55、overeditsinitialinvestment.Thecashflowsinthisproblemareanannuity,sothecalculationissimpler.Iftheinitialcostis$3,400,thepaybackperiodis:Payback=4+$360/$760Payback=4.47yearsThereisashortcuttocalculatepaybackperiodwhenthefuturecashflowsareanannuity.Justdividetheinitialcostbytheannualcashflow.Forthe$3,4

56、00cost,thepaybackperiodis:Payback=$3,400/$760Payback=4.47yearsForaninitialcostof$4,450,thepaybackperiodis:Payback=$4,450/$760Payback=5.86yearsThepaybackperiodforaninitialcostof$6,800isalittletrickier.Noticethatthetotalcashinflows公司金融校级精品课程（双语类）章后习题CHAPTER8NETPRESENTVALUEANDOTHERINVESTMENTCRITERIA8-9

57、aftereightyearswillbe:Totalcashinflows=8($760)Totalcashinflows=$6,080Iftheinitialcostis$6,800,theprojectneverpaysback.Noticethatifyouusetheshortcutforannuitycashflows,youget:Payback=$6,800/$760Payback=8.95yearsThisanswerdoesnotmakesensesincethecashflowsstopaftereightyears,soagain,wemustconcludethepa

58、ybackperiodisnever3.CalculatePayback.OffshoreDrillingProducts,Inc.,imposesapaybackcutoffofthreeyearsforitsinternationalinvestmentprojects.Ifthecompanyhasthefollowingtwoprojectsavailable,shoulditaccepteitherofthem?YearCashFlow(A)CashFlow(B)0$-35,000$-9,5001$13,000$18,0002$19,000$27,0003$14,000$38,000

59、4$8,000$225,000Solution:ProjectAhascashflowsof:Cashflows=$13,000+19,000Cashflows=$32,000duringthefirsttwoyears.Thecashflowsarestillshortby$3,000ofrecapturingtheinitialinvestment,sothepaybackforProjectAis:Payback=2+($3,000/$14,000)Payback=2.21yearsProjectBhascashflowsof:Cashflows=$18,000+27,000+38,00

60、0Cashflows=$83,000duringthefirstthreeyears.Thecashflowsarestillshortby$12,000ofrecapturingtheinitialinvestment,sothepaybackforProjectBis:Payback=3+($12,000/$225,000)Payback=3.05yearsUsingthepaybackcriterionandacutoffof3years,acceptprojectAandrejectprojectB.4.CalculateAAR.Youretryingtodeterminewhethe