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Your search keyword '"DISCOUNTED cash flow"' showing total 5 results
Start Over Descriptor "DISCOUNTED cash flow" Language english Publisher institute of management accountants
5 results on '"DISCOUNTED cash flow"'

1. Improving Capital Budgeting Decisions: With Real Options.

Author

Stout, David E., Yan Alice Xie, and Howard Qi

Subjects
*ACCOUNTANTS, *DISCOUNTED cash flow, *PURCHASING, *AUTOMOBILE leasing & renting, *MANAGEMENT, *HYBRID electric vehicles, *INCOME tax deductions, *TAX credits, *CAPITAL budget
Abstract

In this article we provide accounting practitioners with a primer on how to supplement traditional discounted cash flow (DCF) analysis with real options. We use an example of a rental car company that is considering the purchase of a new car for its rental fleet. Management is trying to decide whether to buy a conventional gasoline-engine automobile or a hybrid vehicle. Within this decision context we illustrate the embedded options the company should consider given uncertainty of a new energy bill offering income-tax credits for the purchase of commercially operated hybrid vehicles. Our step-by-step approach shows how to incorporate these real options formally into the capital budgeting process. [ABSTRACT FROM AUTHOR]

Published
2008

2. USING REAL OPTIONS TO MAKE DECISIONS IN THE MOTION PICTURE INDUSTRY.

Author

Young, S. Mark, Gong, James J., and Van der Stede, Wim A.

Subjects
*MOTION picture industry finance, *REAL options (Finance), *DISCOUNTED cash flow, *FILM sequels, *MOTION picture advertising, *PHARMACEUTICAL industry finance, *CONSTRUCTION industry finance, *ECONOMICS, DECISION making in capital investments
Abstract

The article looks at a study by the Institute of Management Accountants (IMA) on financial investment decision making in the motion picture industry, focusing on the real options method of project analysis. A real options approach to capital investment is compared with a discounted cash flow (DCF) model. Topics discussed include the value of motion picture sequels, film advertising spending, and real options use in other sectors such as the pharmaceutical, paper, or construction industries.

Published
2012

3. Business Valuation Made Simple. It's all about ca$h.

Author

Harrison, David S.

Subjects
*DISCOUNTED cash flow, *VALUATION, *BUSINESS valuation, *BUSINESS finance, *CAPITAL investments, *CASH management, *ECONOMIC forecasting, *TAX returns, *PURCHASING management, *BUSINESS brokerage, *PURCHASING of small business, *SMALL business, *MANAGEMENT, *ECONOMICS
Abstract

In this article the author discusses the advantages of using the discounted cash flow business valuation method. He notes that the number one advantage of this method is its simplicity, adding that in business the simple approaches are often overlooked. He asserts that this method works best for small to mid-sized nonpublic companies. He discusses how by using a combination of prior cash flow statements, tax returns, and business and economic assumptions you can predict future cash flows and yield solid valuations. He also provides a four-step process that walks the reader through the process and teaches them to make their own valuations.

Published
2003

4. New Guidance for Accountants in Business.

Author

WILLIAMS, KATHY

Subjects
*ASSOCIATIONS, institutions, etc., *PUBLICATIONS, *DISCOUNTED cash flow, *ACCOUNTING methods, *ACCOUNTANT societies
Abstract

The article reports that three new booklets are available from the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC). "The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises," "Preface to IFAC's International Good Practice Guidance," and "Project Appraisal Using Discounted Cash Flow" are available at the IFAC online bookstore.

Published
2008

5. When Valuation Considers 'Real Options.'

Author

Levinsohn, Alan

Subjects
*REAL options (Finance), *CORPORATE finance, *DISCOUNTED cash flow, *NET present value, *VALUATION, *SMALL business finance, *VALUATION of corporations, *BUSINESS valuation
Abstract

The article discusses real options analysis for valuations of corporate finances. The article comments that the discounted-cash-flow (DCF) approach and the net-present-value (NPV) method undervalue assets and potential projects. The benefits of using real options analysis when considering small, potentially high growth companies and any internal company project is discussed. Resources for real options analysis are provided.

Published
2001

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