财务成本管理英语04

2008年注册会计师考试辅导财务成本管理英语第1页INVESTMENTAPPRAISAL[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）orARR（会计收益率）（AccountingRateofReturn）B.Payback（回收期法）Paybackperiod=Initialpayment/Annualcashinflow,paybackisnotalwaysanexactnumberofyearsMostcommonformula:ROCE=EBIT（afterdepreciation）/initialcapitalcosts2008年注册会计师考试辅导财务成本管理英语第2页CNPV（净现值法）（1）Basicassumptions:·cashoutlayoccursinyear0（now）.·cashflowsoccurattheendoftheyear.·ifacashflowoccursatthebeginningofayear,itisassumedtooccurattheendofthepreviousyear.DIRR（内含报酬率法）2008年注册会计师考试辅导财务成本管理英语第3页（1）Basicprinciple:IRRisthecostofcapitalatwhichtheNPViszero,iftheexpectedIRRishigherthanatargetrateofreturn;theprojectisfinanciallyworthundertaking.（2）SelectionbetweenIRRandNPV:whenachoicehastobemadebetweenmutuallyexclusiveprojects,insuchcasetheNPVshouldbeselected,becausehigherNPVcanmaximizeshareholder’swealth.DefinitionThediscountratwhich,whenappliedtothecashflowsofaproject,givesanNPVofzero.Or2008年注册会计师考试辅导财务成本管理英语第4页Thebreak-eveninterestrateforaproject.Itisthemaximumrateofinterestthatyoucouldaffordtopayonaprojectwithoutmakingaloss.FeaturesAdvantages-Takesintoaccountthetimevalueofmoney-Relativemeasure-MorereadilyunderstoodthanNPVDisadvantages-Maynotbeunique–projectscanhavemorethanoneIRR-Mayrankprojectsincorrectly–formutuallyexclusiveprojectsorwhenFundsareshortsupply-CannotcopewithchangingratesofinterestThemethodofcalculationdependsuponwhetherornottheprojecthasevencashflows.EvencashflowsConsideraninvestmentof￡39.93mthatgeneratesnetcashearningsof￡10mfor5yearsTheIRRisthediscountratethatgivesaNPVofzero.ThismeansthattheIRRistheRatethatwilldiscountfiveinstallmentsof￡10mtoapresentvalueof￡39.93.ThisinturnMeansthattheIRRisthediscountrateforwhichthe5yearannuityfactoris3.993.ATheproject’sIRRhasbeenfoundviaacumulativediscountfactor（annuityfactor）2008年注册会计师考试辅导财务成本管理英语第5页givenBy:AnnuityfactorattheIRR=forthelifeoftheprojectUnevencashflowsThesehavetobefoundbytrialanderrororbyestimatingusingtwopresentvalues.Where:A=lowerratechosen=NPVatrateAB=higherrate=NPVatrateBIthelpstogetAandBasclosetothetrueIRRaspossible,butitdoesn’tmatterwhethertheresultantNPVsarepositive,negativeoroneofeach.Somestudentsprefertouseacommonsenseapproachratherthanaformula.SeeingbynowMuchNPVhasfallen（fromto）asthediscountratehasrisenfromAtoB,TheyfindhowmuchmorethediscountrateneedstorisetobringtheNPVtozero.Whethertheformulaisusedorcommonsense,thecalculationassumesalinearrelationshipBetweenNPVanddiscountrate.Infacttherelationshipisnotlinear,hencethecalculationIsonlyapproximateand（unlessyouhavebeenluckywhenguessingwhichdiscountratestouse）youshouldnotquoteIRR’scalculatedinthiswaytomany,nottoany,decimalplaces–unlesstheexaminerasksyou.IRRofaperpetuityThepresentvalueofaperpetuityistheannualcashflowdividedbythediscountrate（expressedasadecimal.Fromthisitfollowsthat:theIRRofaperpetuity==100Perpetuity:永续年金MethodofpresentationAsimplecalculationsuchasthoseforWoodscanbedoneonasingleline.Forlargerprojectstwopossibilitiesexist:（i）thecashbudgetapproach（ii）thetabularapproach.2008年注册会计师考试辅导财务成本管理英语第6页（1）CashbudgetapproachTime0123￡’000￡’000￡’000￡’000Investment（X）——XAdvertising（X）（X）--Workingcapital（X）--XMaterials（X）（X）（X）-Labour—（X）（X）（X）Overheads—（X）（X）（X）Revenue———X————Netcashflow（X）（X）（X）X————y%Discountfactor1XXXPresentvalue（X）（X）（X）XNetpresentvalue（￡’000）XThecashbudgetapproachissuitableforshortprojectswithlotsofdifferentcashflowsWhichchangefromyeartoyear.（2）TabularapproachTimeCashflowy%DiscountPresentvalue￡’000￡’000￡’0000Investment（X）1（X）0and1Advertising（X）X（X）0Workingcapital（X）1（X）0-9Materials（X）1（X）1-10Labourandoverheads（X）X（X）1-10RevenueXXX10SalesproceedsXXX10WCrecoveryXXX—Netpresentvalue（￡’000）XThetabularapproachissuitableforlongprojectswithlotsofdifferentcashflowsthatareThesamefromyeartoyear（enablingannuityfactorstobeused）.PickingtherightfiguresWhencarryingoutdiscountedcashflowanalysisitisimportanttoselecttherightfigures.Ignore:1.Sunkcosts–amountsthathavealreadybeenspent2.Depreciation–notacashflow3.Bookvalues–notacashflow4.Non–incrementalfixedcosts（lookoutforthewords“reapportionedfixed2008年注册会计师考试辅导财务成本管理英语第7页overheads”）5.Interestcosts–takenintoaccountbythediscountingprocessInclude:Thosecashflowsthatarespecificallyreceivedorincurredasaresultoftheacceptanceoftheproject（future–incremental–cashflows）.AssetreplacementdecisionFactorstobeconsideredwhenmakingreplacementdecisionareasfollows:·capitalcostofnewequipment;·operatingcosts,increasedrepairandmaintenancecosts;lossofproductivity;lowerofqualityandquantityofoutput;OneapplicationofdiscountedcashflowistomakedecisionsconcernedwiththereplacementofMachinery.Thisappliestoshort–lifeassetsthatwillneedtobereplacedinperpetuity（e.g.motorCarsorphotocopiers）.Asamachinegetsolder,itislikelytocostmoretokeepitrunninganditsScrapvaluewilldecrease.Theaimistofindtheoptimalreplacementcycleforthemachine,i.e.howoftenitshouldbereplaced－beforeitbecomesuneconomictoown.Asimpleapproachwouldinvolvefindingthetotalcostofkeepinganassetfor1,2,3years,etc,Thenfindinganaverageannualcost.DCFVersionNow,eachpossiblereplacementcycleistreateda