Where after initial cost we have to spend operating expenses there which cash flow should we take in to consideration for NPV calculations. Net profit or total revenue?
Dear Friends, I have 2 questions: 1/ Can I create capital Budgeting include only 100% working capital, no fixed assets with project life is 5 years?. 2/ When I create and review the capital Budgeting (example: build new factor or open new 100 shops), I can examine the cost of BOD (Board of directors) is a relevant cost of this project?. Thank you.
Working capital and capital budgeting are two different things. Working capital management deals with the organization’s short term assets and its short term liabilities. The main purpose of working capital management is to ensure that the organization is to continue its operations with sufficient ability to satisfy maturing short term and upcoming expenses. management of working capital involves managing inventories, accounts receivable and payable, and cash. it deals with the day-to-day expenses of the organizations. Capital budgeting is also known as investment appraisal & it is a planning process used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures. IFT Support Team
Dear Friends, I have confused between company valuation and capital budgeting use DCF method: 1/ With company valuation by DCF method, I use Free Cash Flow and discount rate (ex: WACC) evaluate?. 2/ With Capital Budgeting by DCF method, I use Operating Cash Flow and discount rate (ex: WACC) evaluate?.
I hope your students appreciate how good a teacher you are! thanks you for the great lecture!
What a brilliant teacher
And interactive students making the lecture less boring.
Thanks a lot!
thanks for uploading your lecture, very engaging, i found myself answering the questions to the class lol. love the warning on speaking in class too:)
+StylinRed Hello and you're welcome! Please check out our new 2016 Level I Summaries. Good luck with your studies, and thanks for commenting.
Extremely knowledgeable lecturer. Insightful to say tge least!
very helpful your ppt not only management student but also financial management ...........company
your videos are very helpful for CMA. Thank you:)
Super work... was surprised to know, it was a class in Pakistan...
thanks so much this helps me a lot on my finance final exam
thank u sir, for helping us.. god bless you
A very good Lecture....Best
Keep Uploading
Where after initial cost we have to spend operating expenses there which cash flow should we take in to consideration for NPV calculations. Net profit or total revenue?
thank u for uploading it was a good learning experience sir
This was great...
Great lecture, the working out helped me out for my final fin man exam :)
this guy is awesome! :)
Dear Friends,
I have 2 questions:
1/ Can I create capital Budgeting include only 100% working capital, no fixed assets with project life is 5 years?.
2/ When I create and review the capital Budgeting (example: build new factor or open new 100 shops), I can examine the cost of BOD (Board of directors) is a relevant cost of this project?.
Thank you.
Working capital and capital budgeting are two different things. Working capital management deals with the organization’s short term assets and its short term liabilities. The main purpose of working capital management is to ensure that the organization is to continue its operations with sufficient ability to satisfy maturing short term and upcoming expenses. management of working capital involves managing inventories, accounts receivable and payable, and cash. it deals with the day-to-day expenses of the organizations. Capital budgeting is also known as investment appraisal & it is a planning process used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.
IFT Support Team
@@IFT-CFA , I have a project have 5 years life. I think the amount I pay the year 0 is CAPEX, and the amount of year 1,2,3,4 is OPEX. Is It right?.
who is the lecturer?he indeed has an awesome knowledge.
good
nice
what was the IRR for the second example?
love your vids!
ua-cam.com/video/JZ9EBjOjji4/v-deo.html
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r these of acca lectures????? nway thnks 4 uploading.:D
thanq sir
Can you please post the solution of the final question : Sum of IRR?
Dear Friends, I have confused between company valuation and capital budgeting use DCF method:
1/ With company valuation by DCF method, I use Free Cash Flow and discount rate (ex: WACC) evaluate?.
2/ With Capital Budgeting by DCF method, I use Operating Cash Flow and discount rate (ex: WACC) evaluate?.
thank you for the video, can i have slides?
Dear Joseph,
Thanks for your comments. Sorry, the video is old and there are no slides available for it.
IFT Support Team
thank you
Thanks a lot
IRR=L+ P1-Q * (H-L)
P1-P2
25% im assuming? :s