财务管理(英文第十三版)12

12-1Chapter12CapitalBudgetingandEstimatingCashFlows12-2CapitalBudgetingandEstimatingCashFlowsTheCapitalBudgetingProcessGeneratingInvestmentProjectProposalsEstimatingProject“After-TaxIncrementalOperatingCashFlows”12-3WhatisCapitalBudgeting?Theprocessofidentifying,analyzing,andselectinginvestmentprojectswhosereturns(cashflows)areexpectedtoextendbeyondoneyear.12-4TheCapitalBudgetingProcessGenerateinvestmentproposalsconsistentwiththefirm’sstrategicobjectives.Estimateafter-taxincrementaloperatingcashflowsfortheinvestmentprojects.Evaluateprojectincrementalcashflows.12-5TheCapitalBudgetingProcessSelectprojectsbasedonavalue-maximizingacceptancecriterion.Reevaluateimplementedinvestmentprojectscontinuallyandperformpostauditsforcompletedprojects.12-6ClassificationofInvestmentProjectProposals1.Newproductsorexpansionofexistingproducts2.Replacementofexistingequipmentorbuildings3.Researchanddevelopment4.Exploration5.Other(e.g.,safetyorpollutionrelated)12-7ScreeningProposalsandDecisionMaking1.SectionChiefs2.PlantManagers3.VPforOperations4.CapitalExpendituresCommittee5.President6.BoardofDirectorsAdvancementtothenextleveldependsoncostandstrategicimportance.12-8EstimatingAfter-TaxIncrementalCashFlowsCash(notaccountingincome)flowsOperating(notfinancing)flowsAfter-taxflowsIncrementalflowsBasiccharacteristicsofrelevantprojectflows12-9EstimatingAfter-TaxIncrementalCashFlowsIgnoresunkcostsIncludeopportunitycostsIncludeproject-drivenchangesinworkingcapitalnetofspontaneouschangesincurrentliabilitiesIncludeeffectsofinflationPrinciplesthatmustbeadheredtointheestimation12-10TaxConsiderationsandDepreciationGenerally,profitablefirmsprefertouseanacceleratedmethodfortaxreportingpurposes(MACRS).Depreciationrepresentsthesystematicallocationofthecostofacapitalassetoveraperiodoftimeforfinancialreportingpurposes,taxpurposes,orboth.12-11DepreciationandtheMACRSMethodEverythingelseequal,thegreaterthedepreciationcharges,thelowerthetaxespaidbythefirm.Depreciationisanoncashexpense.Assetsaredepreciated(MACRS)ononeofeightdifferentpropertyclasses.Generally,thehalf-yearconventionisusedforMACRS.12-12MACRSSampleScheduleRecoveryPropertyClassYear3-Year5-Year7-Year133.33%20.00%14.29%244.4532.0024.49314.8119.2017.4947.4111.5212.49511.528.9365.768.9278.9384.4612-13DepreciableBasisIntaxaccounting,thefullyinstalledcostofanasset.Thisistheamountthat,bylaw,maybewrittenoffovertimefortaxpurposes.DepreciableBasis=CostofAsset+CapitalizedExpenditures12-14CapitalizedExpendituresCapitalizedExpendituresareexpendituresthatmayprovidebenefitsintothefutureandthereforearetreatedascapitaloutlaysandnotasexpensesoftheperiodinwhichtheywereincurred.Examples:Shippingandinstallation12-15SaleorDisposalofaDepreciableAssetOftenhistorically,capitalgainsincomehasreceivedmorefavorableU.S.taxtreatmentthanoperatingincome.Generally,thesaleofa“capitalasset”(asdefinedbytheIRS)generatesacapitalgain(assetsellsformorethanbookvalue)orcapitalloss(assetsellsforlessthanbookvalue).12-16CorporateCapitalGains/LossesCapitallossesaredeductibleonlyagainstcapitalgains.Currently,capitalgainsaretaxedatordinaryincometaxratesforcorporations,oramaximum35%.12-17CalculatingtheIncrementalCashFlowsInitialcashoutflow--theinitialnetcashinvestment.Interimincrementalnetcashflows--thosenetcashflowsoccurringaftertheinitialcashinvestmentbutnotincludingthefinalperiod’scashflow.Terminal-yearincrementalnetcashflows--thefinalperiod’snetcashflow.12-18InitialCashOutflowa)Costof“new”assetsb)+Capitalizedexpendituresc)+(-)Increased(decreased)NWCd)-Netproceedsfromsaleof“old”asset(s)ifreplacemente)+(-)Taxes(savings)duetothesaleof“old”asset(s)ifreplacementf)=Initialcashoutflow12-19IncrementalCashFlowsa)Netincr.(decr.)inoperatingrevenueless(plus)anynetincr.(decr.)inoperatingexpenses,excludingdepr.b)-(+)Netincr.(decr.)intaxdepreciationc)=Netchangeinincomebeforetaxesd)-(+)Netincr.(decr.)intaxese)=Netchangeinincomeaftertaxesf)+(-)Netincr.(decr.)intaxdepr.chargesg)=Incrementalnetcashflowforperiod12-20Terminal-YearIncrementalCashFlowsa)Calculatetheincrementalnetcashflowfortheterminalperiodb)+(-)Salvagevalue(disposal/reclamationcosts)ofanysoldordisposedassetsc)-(+)Taxes(taxsavings)duetoassetsaleordisposalof“new”assetsd)+(-)Decreased(increased)levelof“net”workingcapitale)=Terminalyearincrementalnetcashflow12-21ExampleofanAssetExpansionProjectBasketWonders(BW)isconsideringthepurchaseofanewbasketweavingmachine.Themachinewillcost$50,000plus$20,000forshippingandinstallationandfallsunderthe3-yearMACRSclass.NWCwillriseby$5,000.LisaMillerforecaststhatrevenueswillincreaseby$110,000foreachofthenext4yearsandwillthenbesold(scrapped)for$10,000attheendofthefourthyear,whentheprojectends.Operatingcostswillriseby$70,000foreachofthenextfouryears.BWisinthe40%taxbracket.12-22InitialCashOutflowa)$50,000b)+20,000c)+5,000d)-0(notareplacement)e)+(-)0(notareplacement)f)=$75,000**Notethatwehavecalculatedthisvalueasa“positive”becauseitisacashOUTFLOW(negative).12-23IncrementalCashFlowsYear1Year2Year3Year4a)$40,000$40,000$40,000$40,000b)-23,331