| |
Chapter 3: Project Appraisal: Cash Flow...
Learning objectives
|
After working through this chapter you should be able to identify and apply relevant and incremental cash flows in net present value calculations. You will also be able to recognise and deal with sunk costs, incidental costs and allocated overheads and be able to employ this knowledge to the following:
- the replacement decision/the replacement cycle;
- the calculation of annual equivalent annuities;
- the make or buy decision;
- optimal timing of investment;
- fluctuating output situations.
|
