【正文】 ractical applications of capital budgeting. ? We ask about the sources of positive present value and explain what managers can do to create positive present value. ? Sensitivity analysis gives managers a better feel for a project’s risks. ? Scenario analysis considers the joint movement of several different factors to give a richer sense of a project’s risk. ? Breakeven analysis, calculated on a present value basis, gives managers minimum targets. ? The hidden options in capital budgeting, such as the option to expand, the option to abandon, and timing options were discussed. McGrawHill/Irwin Copyright 169。 2023年 3月 17日星期五 下午 10時 39分 51秒 22:39: 1楚塞三湘接，荊門九派通。 2023年 3月 17日星期五 10時 39分 51秒 22:39:5117 March 2023 1一個人即使已登上頂峰，也仍要自強(qiáng)不息。 22:39:5122:39:5122:393/17/2023 10:39:51 PM 1成功就是日復(fù)一日那一點(diǎn)點(diǎn)小小努力的積累。 salvage value = $250 Sit on rig。 2023 by The McGrawHill Companies, Inc. All rights reserved. 810 Sensitivity Analysis and Scenario Analysis In the Stewart Pharmaceutical example, revenues were projected to be $7,000,000 per year. If they are only $6,000,000 per year, the NPV falls to $1, Also known as ―what if‖ analysis。 2023 by The McGrawHill Companies, Inc. All rights reserved. 83 Decision Trees ? Allow us to graphically represent the alternatives available to us in each period and the likely consequences of our actions. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 816 Options ? One of the fundamental insights of modern finance theory is that options have value. ? The phrase ―We are out of options‖ is surely a sign of trouble. McGrawHill/Irwin Copyright 169。 22:39:5122:39:5122:39Friday, March 17, 2023 1乍見翻疑夢，相悲各問年。 22:39:5122:39:5122:393/17/2023 10:39:51 PM 1越是沒有本領(lǐng)的就越加自命不凡。 22:39:5122:39:5122:39Friday, March 17, 2023 1知人者智，自知者明。 2023年 3月 17日星期五 下午 10時 39分 51秒 22:39: 1比不了得就不比，得不到的就不要。 2023 by The McGrawHill Companies, Inc. All rights reserved. 818 The Option to Delay: Example ? Consider the above project, which can be undertaken in any of the next 4 years. The discount rate is 10 percent. The present value of the benefits at the time the project is launched remain constant at $25,000, but since costs are declining the NPV at the time of launch steadily rises. ? The best time to launch the project is in year 2—this schedule yields the highest NPV when judged today. Y e ar C os t PV N P V t N P V 00 20,000$ 25,000$ 5,000$ 5,000$ 1 18,000$ 25,000$ 7,000$ 6,364$ 2 17,100$ 25,000$ 7,900$ 6,529$ 3 16,929$ 25,000$ 8,071$ 6,064$ 4 16,760$ 25,000$ 8,240$ 5,628$ 2)(900,7$529,6$ ?McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 85 Stewart Pharmaceuticals ? The Stewart Pharmaceuticals Corporation is considering investing in developing a drug that cures the mon cold. ? A corporate planning group, incl