Professional Documents
Culture Documents
Decisions
Chapter 11
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw-Hill/Irwin
Equipment selection
Lease or buy
Cost reduction
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inflows,
Calculate the present value of cash
outflows,
Subtract the present value of the outflows
from the present value of the inflows.
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11-7
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Preference Decisions
Pertain to whether or
not some proposed
investment is
acceptable; these
decisions come first.
Attempt to rank
acceptable
alternatives from the
most to least
appealing.
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Investment required
Annual net cash inflow
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*Should be reduced by any salvage from the sale of the old equipment
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End of Chapter 11
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