Slide MGT204 Slide06

6-1

Chapter Six

Some Alternative
Corporate Finance
Ross Westerfield Jaffe
Investment Rules
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6

Sixth Edition

Prepared by
Gady Jacoby
University of Manitoba
and
Sebouh Aintablian

American University of
Beirut
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited

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Chapter Outline
6.1 Why Use Net Present Value?
6.2 The Payback Period Rule
6.3 The Discounted Payback Period Rule
6.4 The Average Accounting Return
6.5 The Internal Rate of Return
6.6 Problems with the IRR Approach
6.7 The Profitability Index
6.8 The Practice of Capital Budgeting
6.9 Summary and Conclusions
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited