GICE Govt Purchase IPIRATED Income
GICE Govt Purchase IPIRATED Income
GICE Govt Purchase IPIRATED Income
EOQ = √(2SO)/C
P Price DA (AP-SP)XAQ
U Usage DS (AQ-SQ)XSP
R Rate DA (SR-AR)XAH
E Efficiency DS (SH-AH)XSR
OH Variance
one way Actual Applied (FOH+VOH)Actual Hours
Budget Volume
cost of debt = Eff int rate *(1-tax) Cost of Prefereed stock = div/net proceeds
EVA Required Return
How to calculate the IRR = Determine life of Proj - use payback period as PV
profitabilty index - PV of Cinflows/PV of net initial investment
PV of asset = Projected CF/Required Rate of Return
payback period = net initial inv / increase in annual CF(Includes dep shield)
discounted payback period => cash flows are discounted
DCF
Bond yield plus risk prem