
INDEX
)
A
A,23,26
Ab
s
ol
u
te
cell referenc
in
g,
247
Accelerated Cost Recovery System (ACRS), 534
Accelerated write-o
ff
, 532, 578
Accounting
ratios, 7
19
- 23
statements, 718- 19
Acid-test ra
ti
o, 720
Acquisition phase, 190
Activity based cost
in
g (ABC), 5 1
2-
16
A/F factor, 60
After-tax
an
d alternative selection,
II
, 603
and annual
wo
rth
, 586
-88
cash flow, 575- 77, 586- 92, 606
debt
ve
rsus equity financ
in
g, 6
17
- 19
a
nd
deprecia
ti
on, 532
internation
al
, 603- 5
a
nd
MARR, 353, 586
rate or return, 588- 91
and
WAC
C, 356
After-
ta
x replacement analysis, 595- 99
AIG factor, 68. See also Gradients, a
ri
thmetic
Alternative depreciation system (ADS), 545
Alternatives
attribute-based ratin
g,
368- 69
and breake
ve
n anal
ys
i
s,
287
cash
fl
ow es
ti
mate types, 220- 21
defined,
9-
10
and
EVA
TM
,
600-60
I
and
in
cremental rate-of-return, 5
88-9
0
in
dependent, 170- 72, 283, 330 (see also Capital
budge
tin
g)
infinite life, 228- 31
,33
0
mutually exc
lu
sive, 170
,223
-
28,348-5
1
and payback analysis, 186
reve
nu
e,
172
selection, I I
service, 172
in
simula
ti
on, 678, 679
Amortization.
See Depreciation
An
nu
al
in
come, es
ti
mated, 10
Annual interest rate
e
ff
ective, 1
30-36
nominal, 130, 13 I
Annual operating costs (AOC),
10
, 220, 391-92,
451
and estimation, 496
-9
7
in
Excel® spreadsheet,
702-3
Annual Percentage Rate (APR), 127
-28
Annu
al
Percentage Yield (APY), 127- 28
Annual
wOlth
advantages, 218, 254
after-tax analysis, 586
-88
of
an
nu
al operat
in
g costs,
391
a
nd
BIC
analysi
s,
321
-23,
326, 333
and breakeven analys
is
, 451
and capita1-recovery-plus-interest,
221
- 23
components, 22 1- 23
computer so
lu
tion
s,
225, 227-28, 230-
31
equ
iv
alent uniform,
221
, 229
eva
lu
ation
by
, 218-31
and
EVATM
, 600-603
and future worth, 2
18
a
nd
incremental ra
te
of
return, 588-91
of
infinite-life projects, 228-31
and
infl
ation, 21
8,
485-86
and present worth, 218
and rate
of
return, 248,
291-92
and replacement analysis, 388, 390, 392- 96,
404
-10
a
nd
sensitivity analysis, 623
when
to
use, 350 (table)
AOe.
See Annual operating costs
AlP
factor,
58-59
, 22 1
APR,
127
-2
8
APY, 1
27-28
Arithmetic gradient
s.
See Gradients, arithmetic
As
set
s.
See also Book va
lu
e; Depletion; Depreciation;
Life; Salvage value
in
balance sheet, 7 17
cap
it
al recovery,
221
replacement studies, 220 (see also Replacement
analysis)
retu
rn
on,
721
sunk cost, 389
Attributes
evaluating multiple, 369-71
id
entifying, 365- 66
we
ightin
g,
366- 69
Average.
See Expected
va
lue
Average cost per unit, 448
Average tax rate,
571-72