| A | B |
|---|
| Maximization of Shareholder Value | ultimate goal of mgmt of multinat'l firm to increase value of s/h's investment as much as possible |
| Net Present Value (NPV) | sum of present values of all cash inflows/outflows from investment project discounted at cost of capital |
| Capital Budget | financial eval of proposed investment to determine whether expected returns are enough to justify investment expenses |
| Capital Outlays | upfront costs/expenses of proposed investment |
| Operating Cash Flows | arise from firm's everyday business activities |
| Terminal Cash Flows | salvage/resale value of project at termination |
| Debt-Equity Structure | capital obtained by borrowing from others such as banks (debts) and capital provided by owners (equity) |
| Working Capital Management | mgmt of firm's CA (cash, A/R, inventories) and CL (A/P, short-term debt) |
| Financing Cash Flows | arise from firm's funding activities |
| Netting | cash flow coordination btw corp's global units so that only one smaller cash xfer must be made |
| Cash Pooling | used by multinat'l firms to centralize individual units' cash flows, resulting in less spending or foregone interest on unnecessary cash balances |
| Leads | paying a debt early to take advantage of xchg rates |
| Lags | paying a debt late to take advantage of xchg rates |
| Re-Invoicing | policy of buying goods from 1 unit, selling to 2nd, and re-invoicing to next unit, to take advantage of favorable xchg rates |
