Corporate Finance

  1. Capital Budgeting: Investment Decisions
    1. The Capital Budgeting Process
      1. Project Identification and Generation
        1. Project Evaluation and Selection
          1. Project Implementation and Monitoring
            1. Post-Audit of Projects
              1. Capital Rationing
              2. Estimating Project Cash Flows
                1. Identifying Relevant Cash Flows
                  1. Incremental Cash Flows
                    1. Sunk Costs
                      1. Opportunity Costs
                        1. Side Effects
                        2. Pro Forma Financial Statements for Projects
                          1. The Impact of Depreciation
                            1. Depreciation Methods
                              1. Straight-Line Depreciation
                                1. Accelerated Depreciation
                                  1. MACRS
                                  2. Tax Shield from Depreciation
                                  3. Net Working Capital
                                    1. Initial Working Capital Investment
                                      1. Changes in Working Capital
                                        1. Recovery of Working Capital
                                        2. Salvage Value and Tax Effects
                                        3. Capital Budgeting Decision Criteria
                                          1. Net Present Value
                                            1. NPV Rule
                                              1. NPV Profile
                                                1. Advantages and Limitations
                                                2. The Payback Period
                                                  1. Calculation and Interpretation
                                                    1. Advantages and Limitations
                                                    2. The Discounted Payback Period
                                                      1. The Internal Rate of Return
                                                        1. IRR Rule
                                                          1. IRR vs. NPV
                                                            1. Problems with IRR
                                                              1. Multiple IRRs
                                                                1. Non-Conventional Cash Flows
                                                                  1. Mutually Exclusive Projects
                                                                  2. Modified Internal Rate of Return
                                                                  3. The Profitability Index
                                                                    1. Calculation and Interpretation
                                                                      1. Use in Capital Rationing
                                                                      2. Comparing Decision Criteria
                                                                      3. Project Analysis and Evaluation
                                                                        1. Scenario Analysis
                                                                          1. Best Case, Worst Case, Base Case
                                                                          2. Sensitivity Analysis
                                                                            1. One-Way Sensitivity
                                                                              1. Multi-Way Sensitivity
                                                                              2. Break-Even Analysis
                                                                                1. Accounting Break-Even
                                                                                  1. Cash Break-Even
                                                                                    1. Financial Break-Even
                                                                                    2. Monte Carlo Simulation
                                                                                      1. Decision Trees
                                                                                        1. Real Options
                                                                                          1. Types of Real Options
                                                                                            1. Expansion Options
                                                                                              1. Abandonment Options
                                                                                                1. Timing Options
                                                                                                  1. Switching Options
                                                                                                  2. Valuing Real Options

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                                                                                              5. Risk and Return

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                                                                                              7. Capital Structure: Financing Decisions