6 factors that affect interest rates

simple interest and compound interest

Nominal interest rate r=12%

4 factors that influence the time value of money

Calculation formula

What abilities and states, please pay attention to the table in the handout

For operating plans, evaluate their profitability, solvency, and financial viability; for non-operating plans, only analyze financial viability;

According to the nature of the evaluation method; qualitative and quantitative; according to whether to consider time factors: dynamic and static; whether to consider financing analysis: before financing (the entire calculation period, total profitability) and after financing;

Divided into static indicators and dynamic indicators: remember that static indicators are debt solvency (interest reserve ratio, debt service reserve ratio, current ratio, quick ratio, asset-liability ratio), investment rate of return, static investment payback period

Calculation of the static investment payback period Pt Calculation of the year in which the cumulative net cash flow is greater than zero minus one, plus the cumulative cash flow of the previous year divided by the inflow minus the outflow in the year in which a positive number occurs

For the calculation of financial net present value FNPV, the solution greater than zero is feasible, and the solution less than zero is not feasible; remember the advantages and disadvantages (the sum of the present values ​​of cash flows in each year)

Financial internal rate of return FIRR: For the profitability of funds that have not yet been recovered in the plan, calculate it through similar triangles and compare the size of Ic with the plan. If the plan is greater than Ic, it is acceptable, and vice versa is unacceptable;

Relationships between schemes: independent relationships, mutually exclusive relationships, and related relationships

Incremental indicator comparison steps: pay attention to the sorting question

Linear profit and loss: the content of fixed costs and variable costs. Note that piece rate wages are variable costs.

Volume cost and profit model: total cost = fixed cost (unit variable cost, business tax and surcharge) * production volume

The lower the break-even point, the better ≤ 70% technical solution safety

Methods and steps: 1. Find indicators; 2. Find factors; 3. Calculate the impact (through sensitivity analysis tables and sensitivity analysis charts, where the greater the slope of the sensitivity analysis chart, the more sensitive it is); 4. Determine the sensitive factors (the sensitivity coefficient is the slope The larger the rate, the more sensitive it is, and the critical point is closer to 0, the more sensitive it is); 5. Analyze the results of sensitive factors

critical point

1. Wear is divided into tangible wear, invisible wear, and comprehensive wear; 2. Tangible wear is divided into: the first tangible wear (external force), the second kind of wear (equipment idle, natural force wear); invisible wear is divided into; first One kind of scientific and technological progress reduces the cost of producing the same equipment, and the second is the emergence of new equipment and new processes; 3. Partial compensation for tangible wear and tear is "repair", and full compensation is "updating"; partial compensation for invisible wear and tear is "modern modification", All compensation is "updated".

Natural life (determined by tangible wear), technical life (determined by invisible wear), economic life (determined by both)

Average annual asset consumption cost, average annual operating cost, average annual use cost, N0 corresponding to the lowest annual average use cost is the economic life of the equipment; pay attention to the calculation formula

The comparison and selection of equipment updates only considers current and future cash flows and is not affected by silent costs; sunk cost = equipment book value - current market value

What the lease has is the right to use, and the lease is divided into finance lease (the expired equipment is owned by the lessor, usually the lessor is not responsible for maintenance and repair) operating lease (the lessor is responsible for the maintenance and repair)

Advantages and disadvantages of leasing: 1. Rent can be deducted before income tax; 2. It can maintain the flow of funds and will not worsen corporate assets and liabilities; 3. It can avoid the impact of inflation and interest rate fluctuations; Disadvantages: 1. Only use rights, 2. The rent is greater than the purchase amount, forming a long-term liability, 3. The compensation for breach of contract is relatively large.

Tax calculation method R=P*(1/N I R)

When leasing, you can pay less income tax on the leasing fee; when purchasing, you can pay less income tax on the depreciation fee and interest.

1. Value engineering calculation formula V=F/C; 2. Five ways to improve value, two-way (F becomes larger and C becomes smaller, the best), conservation (F remains unchanged, C becomes smaller), improvement ( C remains unchanged, F becomes larger), investment type (C becomes a little larger, F is greatly improved), sacrificial type (F becomes smaller, C becomes greatly smaller)

7 characteristics of value engineering, see handout --- key points

Preparation Phase

analysis stage

innovation stage

Implementation phase