Good presentation Matt... What of on-going initial cost from year 1-5 and inflows will be from year 1 till infinity. Can you come-up with a similar presentation based on my question. Thank you
I have 2 questions: 1/ Short-term business plan and business strategy is supported by Opex, right? 2/ Long-term business plan and business strategy is supported by capex, right?.
Dear Friends, I have a questions: 1/ In the Capital Budgeting for 5 years, ABC company spent 500 million USD and borrowed 200 million USD from the bank. I want to calculate the break even point of of the capital budgeting. How do you do?.
@@MattMacarty , okie, I have revenue for each year. So, I want to calculate the break even point for each year and all in a capital budgeting. How do I setup?.
Dear Friends, I have 3 questions: 1 / I mean the capital budgeting is a tool to simulate the cash flow of a capex project and evaluate the profitability and feasibility of each capex project, is that correct or not? 2 / For capex projects with approved capital budgeting, how do I put this CAPEX cash flow into the cash flow of company? 3 / For business planning, I mean CAPEX will create OPEX before, right ?.
Dear friends, I have many questions: 1/ If the CAPEX have only cost and no revenue, I think it is OPEX, right?. 2/ Open the new sale department, I think it is OPEX, right?. 3/ Open new branch in other city, I think it is OPEX, right?. 4/ If the company implement cost leadership strategy, What are the company implement CAPEX projects?.
1, in general OPEX would be for "projects" 1 year or less. Sometimes you have no revenue, but do have a cost reduction, which can be seen as cash inflow. 2. it depends on the time scale of this. 3. Probably, but again this can take more time than the regular operating cycle. 4. Not sure what you mean.
M&A transaction, open new distribution channels, invest in the foreign country are 3 kinds of capex projects, right?
Sure, although M&A may be much more complex to model.
Service company
R&D expense , installation fee and assets purchase. Above item need to count into break even revenue?
Yes
Good presentation Matt... What of on-going initial cost from year 1-5 and inflows will be from year 1 till infinity. Can you come-up with a similar presentation based on my question. Thank you
I will see what I can do, but you can determine the value of the infinite flows by dividing the projected continuous flow by the cost of capital.
I have 2 questions:
1/ Short-term business plan and business strategy is supported by Opex, right?
2/ Long-term business plan and business strategy is supported by capex, right?.
Yes.
Dear Friends,
I have a questions:
1/ In the Capital Budgeting for 5 years, ABC company spent 500 million USD and borrowed 200 million USD from the bank. I want to calculate the break even point of of the capital budgeting. How do you do?.
You are only giving outflows. To break even you will need some inflows
@@MattMacarty , what is inflow?
@@ntcuong01ct1 So if you are investing in a capital budgeting project, you expect it to generate revenue. If it does not, it is just an expense.
@@MattMacarty , okie, I have revenue for each year. So, I want to calculate the break even point for each year and all in a capital budgeting. How do I setup?.
@@ntcuong01ct1 You can download my model from the link in the video description
Dear Friends,
I have 3 questions:
1 / I mean the capital budgeting is a tool to simulate the cash flow of a capex project and evaluate the profitability and feasibility of each capex project, is that correct or not?
2 / For capex projects with approved capital budgeting, how do I put this CAPEX cash flow into the cash flow of company?
3 / For business planning, I mean CAPEX will create OPEX before, right ?.
Hi. 1. Yes; 2. As they occur, some will start in cash flows from investing activiity; 3. Same
Dear friends, I have many questions:
1/ If the CAPEX have only cost and no revenue, I think it is OPEX, right?.
2/ Open the new sale department, I think it is OPEX, right?.
3/ Open new branch in other city, I think it is OPEX, right?.
4/ If the company implement cost leadership strategy, What are the company implement CAPEX projects?.
1, in general OPEX would be for "projects" 1 year or less. Sometimes you have no revenue, but do have a cost reduction, which can be seen as cash inflow. 2. it depends on the time scale of this. 3. Probably, but again this can take more time than the regular operating cycle. 4. Not sure what you mean.