7-1
McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited
Corporate Finance
Ross Westerfield Jaffe Sixth Edition
7
Chapter Seven
Net Present Value and
Capital Budgeting
Prepared by Gady Jacoby
University of Manitoba and
Sebouh Aintablian
7-2
McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited
Chapter Outline
7.1 Incremental Cash Flows
7.2 The Majestic Mulch and Compost Company: An Example 7.3 Inflation and Capital Budgeting
7.4 Investments of Unequal Lives: The Equivalent Annual Cost Method