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