文档介绍：Capital Budgeting and Cost Analysis CHAPTER 21 Capital Budgeting and Cost Analysis Two Dimensions of Cost Analysis Project-by-Project Dimension: one project spans multiple accounting periods Period-by-Period Dimension: one period contains multiple projects Sample Project Timelines and Accounting Year-Ends Capital Budgeting Capital Budgeting is making long-run planning decisions for investing in projects Capital Budgeting is a decision-making and control tool that spans multiple years Six Stages in Capital Budgeting Identification Stage – determine which types of capital investments are necessary to anizational objectives and strategies Search Stage – explore alternative capital investments that will anization objectives Six Stages in Capital Budgeting: Continued Information-Acquisition Stage – consider the expected costs and benefits of alternative capital investments Selection Stage – choose projects for implementation Financing Stage – obtain project financing Implementation and Control Stage – get projects under way and monitor their perfomance Four Capital Budgeting Methods Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period Accrual Accounting Rate of Return (AARR) Discounted Cash Flows Discounted Cash Flow (DCF) Methods measure all expected future cash inflows and outflows of a project as if they occurred at a single point in tim