ENGINEERING ECONOMICS ESTIMATING THE PROFITABILITY OF A CHEMICAL PLANT Estimating Investment Estimating Cost of Production Profitability Evaluation Return on Investment (ROD) Payout time(Tpay) DCF Rate of Return(DCFROR) Transfer Price

Stocks Versus Flows Present Discounted Value The vValue of Bond The Net Present Value Criterion for Capital Investment Decisions

ECENOMIC S Consumption and Investment? a What Are the Major Forces Affectil

Topics Covered Discounted Cash Flows. NetProfits Incremental Cash Flows STreatment of Inflation Separation of Investment Financing Decisions SExample: Blooper Industries

1 Course Information 2 Cash Flows 3 Investments and Markets 4 Typical Investment Problems

Arbitrage Pricing Theory Arbitrage-arises if an investor can construct a zero investment portfolio with a sure profit Since no investment is required, an investor can create large positions to secure large levels of profit

Objectives目标 Improving Investment Operation Efficiencies 提高投资和运行效率 Approach研究方法 General Investment Survey and Forecasting 总体投资分析和预测 Identify Key Issues and Constraints 确认关键问题与制约因素 Initiate Benchmarking system for WW Utilities 建立污水行业绩效评估系统

ENGINEERING ECONOMICS ESTIMATING THE PROFITABILITY OF A CHEMICAL PLANT Estimating Investment Estimating Cost of Production Profitability Evaluation Return on Investment (ROD) Payout time(Tpay) DCF Rate of Return(DCFROR) Transfer Price

Chapter F12 Power notes Corporations: Income and Taxes, nts in Stocks Stockholders' Equity, Investm Learning Objectives 1. Corporate Income Taxes 2. Unusual Income Statement Items 3. Earnings Per Common Share 4. Reporting Stockholders'Equity 5. Comprehensive Income 6. Accounting for Investment in Stocks 7. Business Combinations 8. Financial Analysis and Interpretation

This paper is an updated version of a previous working paper, Capital Budgeting in the Presence of Managerial Overconfidence and Optimism, by the same authors. Financial support by the Rodney L. white Center for Financial Research is gratefully acknowledged. The authors would like to thank Andrew Abel, Jonathan Berk, Domenico Cuoco, David Denis, Janice Eberly, Robert Goldstein, Peter Swan, and seminar