Management and Organizational Studies 1023A/B Chapter Notes - Chapter 5: Net Present Value, Cash Flow, Capital Budgeting

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Acceptable, since it promises a return greater than the required rate of return. Acceptable, since it promises a return equal to the required rate of return. Negative . a return less than the required. Increase in annual cash inflows 1,000: no investments are to be made unless they have an annual return of at least 10% Principle 6: ethics and trust in business: sound ethical standards are important for business and personal success, unethical decisions can destroy shareholder wealth. Canada(cid:495)s balance sheet: e = a l. Net worth/equity: the difference between the value of what is owned and what is owed. Household sector, business, and government real assets: the tangible things that compose personal and business assets. Personal assets: the value of houses, the land the houses are on, the appliances, and cars. Major real assets: houses, consumer durables, land on which houses are built.