Telah disadari bahwa corporate valuation merupakan alat manajemen yang semakin mendapat tempat sentral dalam pengambilan keputusan bisnis korporat. Alat ini amat berguna baik bagi outside maupun inside investor.

Outside investor menggunakan alat sebagai sarana analisis yang akan memberikan masukan untuk keputusan beli, jual atau memegang suatu aset. Sedangkan inside investor menggunakannya untuk mengevaluasi pilihan-pilihan strategi bisnis dan value enhancement. Strategi bisnis tersebut termasuk pula keputusan-keputusan investasi penting, merger, akuisisi dan pertumbuhan (growth decision). Dengan value enhancement, para manajer bisnis dapat mengidentifikasi faktor-faktor yang dapat meningkatkan kinerja perusahaan yang terefleksi pada nilai perusahaan.

Tujuan

* Program ini berupaya membantu para peserta untuk mengembangkan kemampuan dalam melakukan proses valuasi. Kemampuan tersebut dapat membantu meningkatkan kualitas keputusan finansial dan stratejik mereka. * Diharapkan, setelah selesai mengikuti program para perserta akan memperoleh : * pemahaman dan konteks mengenai corporate valuation

* pengetahuan mengenai beberapa metoda-metoda valuasi
* pemahaman mengenai kelebihan dan kekurangan tiap metoda valuasi dan saat yang tepat untuk menggunakannya * kesiapan dalam menggunakan valuasi sebagai salah satu alat penting dalam pengambilan keputusan bisnis * pengenalan value enhancement

Siapa yang harus hadir

* Corporate valuation sesuai untuk dihadiri, tapi tidak terbatas, oleh : * Para eksekutif yang terlibat dalam keputusan keuangan dan strategi korporat. * Para konsultan yang memberikan jasa konsultasi finansial dan valuasi * Para analis sekuritas yang ingin mendapatkan pengetahuan analisa fundamental

Topik Pelatihan

* Valuation and Business Strategy
o Valuation for Inside Investor and Outside Investor o...

...
CapitalBudgeting Analysis Project
MBA 612
The General CapitalBudgeting Process and how it is implemented within Organizations
The general capitalbudgeting process is the tool by which an organization determines its choice of investments through analyzing and evaluating its cash in and out flows. The capital budget process is vital to the organizations mere existence. Capitalbudgeting decisions can mean the difference between the company’s survival and its extinction, especially in today’s volatile global economic environment. The goal of survival for an organization is to create the maximum amount of shareholder wealth. To achieve positive shareholder wealth, the organization must maximize its share price through creating a positive net present value. The organization cannot achieve shareholder wealth without the use and understanding of a solid capital budget process (Megginson, Smart, Graham, 2010).
Capitalbudgeting analysis is really a test to see if the benefits (cash inflows) are large enough to repay the company for three things the cost of the asset, the cost of financing the asset (interest) and a rate of return (Investopedia, n.d.).
The capital budget process involves three basic steps:
1)...

...CapitalBudgeting
Part I
PV= FV / (1+i)^y PV= present value, FV= future value, i= discount rate, and y= time.
1a) If the discount rate is 0%, what is the projects net present value?
Year Cash Flow Discount Rate Discounted Cash Flow
0 -$400,000 0% -$400,000
1 $100,000 0% $100,000
2 $120,000 0% $120,000
3 $850,000 0% $850,000
Answer: The projects net present value is $670,000
If the discount rate is 2%, what is the projects net present value?
Year Cash Flow Discount Rate Discounted Cash Flow
0 -$400,000 2% -$400,000
1 $100,000 2% $98,039
2 $120,000 2% $115,340
3 $850,000 2% $800,974
Answer: The projects net present value is $614,353.45
If the discount rate is 6%, what is the projects net present value?
Year Cash Flow Discount Rate Discounted Cash Flow
0 -$400,000 6% -$400,000
1 $100,000 6% $94,340
2 $120,000 6% $106,800
3 $850,000 6% $713,676
Answer: The projects net present value is $514,815.59
If the discount rate is 11%, what is the projects net present value?
Year Cash Flow Discount Rate Discounted Cash Flow
0 -$400,000 11% -$400,000
1 $100,000 11% $90,090
2 $120,000 11% $97,395
3 $850,000 11% $621,513
Answer: The projects net present value is $408,997.46
With a cost of Capital of...

...Capital Budget Recommendation
Anne Adams
University of Phoenix
Managerial Accounting and Legal Aspects of Business
AC543
Sean DAmico
August 20, 2012
Abstract
This paper will give a comparison between the various preferred capitalbudgeting evaluation techniques in the corporate business setting. There will be a recommendation given for the Guillermo Furniture Company based on the results of one or more evaluation techniques, which in turn will help direct the financial health of the organization.
Corporations are continually striving to improve the financial health of its organization and one strategic way many corporations are doing that is through capitalbudgeting. Capitalbudgeting involves choices. The choices revolve around projects that will add value to the organization. The projects can include acquiring land, purchasing a truck, or replacing old equipment. Many times, corporations are encouraged to undertake projects that will increase its profitability. The challenge is to find the appropriate evaluation method to bring the intended profitability into reality.
The three preferred evaluation methods that many corporations use are net present value, internal rate of return, and payback period. Many corporations often calculate capitalbudgeting solutions using all three methods. However, each method often produces...

...
CapitalBudgeting
QRB/501
July 25, 2013
On this paper the reader will be able to find the rationale in the analysis of a specific capitalbudgeting case study. Definitions along with explanations related to capitalbudgeting such as Internal Rate of Return (IRR) and Net Present Value (NPV) will be provided and debriefed. It is extremely relevant to mention that capitalbudgeting allows the companies to analyze one or more projects to decide eventually which project or piece of equipment would be most profitable or suitable (economically), according to the needs and the capacities the company has.
Before entering into the analysis a little further and into the company chosen let us define what Net Present Value really is. According to Business Dictionary (2011) the definition of NPV is “The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return.” “NPV is considered as one of the two discounted cash flow techniques, the other one is the Internal Rate of Return”. There are different types of net present values such as the negative net present value (worse return), the positive present value (better return), and the zero net present value that basically means that the original amount...

...CAPITALBUDGETING
PRINCIPLES
Capitalbudgeting is the process of evaluating and implementing a firm’s investment opportunities, by virtue of properly identifying such investments that are likely to enhance a firm’s competitive advantage and increase shareholder wealth. A typical capitalbudgeting decision involves a large up-front investment followed by a series of smaller cash inflows. A typicalcapitalbudgeting process is focused around following basic principles:
1) Decisions are based on potential cash flows and not accounting income: If a project is undertaken and subsequently some relevant incremental cash flows are to flow out by virtue of such a capitalbudgeting plan, the relevant cash flows are to be considered as a part of the budgeting process, and the decisions on capitalbudgeting have to take such incremental cash flows into consideration, before properly evaluating such a capitalbudgeting plan. However, the sunk costs, which can’t be avoided, even by overlooking or avoiding such a capitalbudgeting plan, should not be considered for acceptance or rejection of the project.
However, while finalizing a capitalbudgeting decision, one needs to examine the impact of implementing such a plan on...

...WHAT IS CAPITALBUDGETING?
1.
2.
Decision making process of selecting and evaluating longterm investments. Examples include the decision to replace
equipment, to develop new product, or to build new shop at
a new branch of operations.
It is very crucial for companies to make the right decisions
because these projects require a huge amount of cash
outflow committed for many years. A right decision will
increase the firm’s value as well as the shareholders’ wealth.
A wrong decision will result in a drop in firm value as well
as shareholders’ wealth.
CapitalBudgeting
1
CapitalBudgeting Process
1.
2.
3.
4.
5.
Generating long-term investment proposals consistent with a
firm’s long-term objectives
Estimating the relevant after-tax incremental cash flows for
these project proposals
Evaluating these cash flows
Selecting the project that will maximize shareholders’
wealth
Reevaluating these projects from time to time for control
purposes and carrying out post-audits for completed
projects.
CapitalBudgeting
2
TYPES OF PROJECTS
1.
Independent projects – are projects whose cash flows are
not affected by the acceptance or nonacceptance of other
projects. If a firm has unlimited funds to invest, all the
independent projects that meet its minimum investment
criteria can be implemented. For example, a firm with...

...Strident Marks can utilize the capitalbudgeting to evaluate their proposed long-term investments. Once we have identified a list of potential investment projects, the next step in the process will be to estimate the expected cash flows and risk of each project. Based on these estimates, we can evaluate each project and decide which set of projects are the best for Strident Marks to undertake. The primary decision methods used to evaluate the projects will be payback, net present value, and internal rate of return(Gallagher, 2003).
The simplest capitalbudgeting method is the payback method. The analyst must calculate the number of years it will take to recoup the project's initial investment (Gallagher, 2003). This is done by adding up the project's cash inflows one year at a time until the sum equals the amount of the project's initial investment. The number of years is the payback period. To evaluate this method, the manager must have in mind a particular number of years that is acceptable to the firm. If the payback period is less than or equal to that predetermined number, then the project is accepted.
Payback Method for Strident Marks Project
Period
0 Initial Investment -$10,000
1 Cash Flow $7,500
Remaining -$2,500
2 Cash Flow $7,500
Remaining $5,000
3 Cash Flow $7,500
Remaining $12,500
Solution:
Payback (in years) = 1 + (5,000/7,500)
Payback = 1.67 years
The...

...Finance 09/05/2014
A - Capitalbudgeting is an analysis of potential additions to fixed assets, it is part of the long term decisions taken by the top management and involve large expenditures. The capitalbudgeting is very important to firm’s future. The difference between capitalbudgeting and individual’s investment decisions are in the estimation of cash flows, risk, and determination of the appropriate discount.
B - The difference between interdependent and mutually exclusive projects is that the independent project’s cash flows are not affected by the acceptance of the other, although the mutually exclusive can be adversely impacted by the acceptance of the other. the difference between normal and no normal cash flow stream projects occurs in the signs since for the normal cash flows if the cost ( negative CF) followed by a series of positive cash flows will lead to one change of sign. On the other hand the non-normal project cash flows have two or more changes of sign
C – 1 NPV: is the sum of all cash inflows and outflows of a project
C - 2 - The rationale behind the NPV method is that it is equal to PV of inflows minus the cost which is the net gain in wealth. If the projects are mutually exclusive we will choose the project with the highest...