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销售述职报告ppt范文MBAs and other candidates with business backgrounds, take note - interviewers will expect you to have a more detailed take on your ca than an undergraduate would have. Here are some commonly ud ca concepts.
Net prent value
Perhaps the most important type of decision company managers must make on a daily basis is whether to undertake a propod investment. For example, should the company buy a certain piece of equipment? Build a particular factory? Invest in a new project? The types of decisions are called capital budgeting decisions. The consultant makes such decisions by calculating the net prent value of each propod investment and making only tho investments that have positive net prent values.
Example: Hernandez is the CFO of Western Manufacturing Corp., an automobile manufacturer. The company is considering opening a new factory in Ohio that will require a
n initial investment of $1 million. The company forecasts that the factory will generate after-tax cash flows of $100,000 in Year 1, $200,000 in Year 2, $400,000 in Year 3, and $400,000 in Year 4. At the end of Year 4, the company would then ll the factory for $200,000. The company us a discount rate of 12 percent. Hernandez must determine whether the company should go ahead and build the factory. To make this decision, Hernandez must calculate the net prent value of the investment. The cash flows associated with the factory are as follows:
Hernandez then calculates the NPV of the factory as follows:
Since the factory has a negative net prent value, Hernandez correctly decides that the factory should not be built.
The net prent value rule
Note from the example above that once the consultant has figured out the NPV of a propod investment, she then decides whether to undertake the investment by applying the net prent value rule:
outlineMake only tho investments that have a positive net prent value.
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As long as the consultant follows this rule, she can be confident that each investment is making a positive net contribution to the company.
The Capital Ast Pricing Model (CAPM) 小语种招生
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In the above example, we assumed a given discount rate. However, part of a consultant's job is to determine an appropriate discount rate (r) to u when calculating net prent values. The discount rate may vary depending on the investment.
英文信件格式Beta
The first step in arriving at an appropriate discount rate for a given investment is determining the investments riskiness. The market risk of an investment is measured by its "beta" (?), which measures riskiness when compared to the market as a whole. An investment with a beta of 1 has the same riskiness as the market as a whole (so, for example, when the market moves down 10 percent, the value of the investment will on av
erage fall 10 percent as well). An investment with beta of 2 will be twice as risky as the market (so when the market falls 10 percent, the value of the investment will on average fall 20 percent).
CAPM
iphdOnce the consultant has determined the beta of a propod investment, he can u the Capital Ast Pricing Model (CAPM) to calculate the appropriate discount rate (r):
The risk-free rate of return is the return the company could receive by making a risk-free investment (for example, by investing in U.S. Treasury bills). The market rate of return is the return the company could receive by investing in a well-diversified portfolio of stocks (for example, S&P 500).
Example: Shen, Inc., a coal producer, is considering investing in a new venture that would manufacture and market carbon filters. Shen's chief financial officer, Apelbaum, wants to calculate the NPV of the propod venture in order to determine whether the co
mpany should make the investment. After studying the riskiness of the propod venture, Apelbaum determines that the beta of the investment is 1.5. A U.S. Treasury note of comparable maturity currently yields 7 percent, while the return on the S&P 500 stock index is 12 percent. Therefore, the discount rate Apelbaum will u when calculating the NPV of the investment will be:
Although this is an overly simplified discussion of how consultants calculate discount rate to u in their cash-flow analysis, it does give you an overview of how consultants incorporate the notion of an investment's market to lect the appropriate discount rate.
accidentsPorter's Five Forces
Developed by Harvard Business School professor Michael Porter in his book Competitive Strategy, the Porter's Five Forces framework helps determine the attractiveness of an industry. Before any company expands into new markets, divests product lines, acquires new business, or lls divisions, it should ask itlf, "Is the industry we're entering or exiting attractive?" By using Porter's Five Forces, a company can begin to develop a thou
ghtful answer. Consultants frequently utilize Porter's Five Forces as a starting point to help companies evaluate industry attractiveness.
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