Financial Management

  1. Capital Budgeting
    1. Capital Budgeting Process
      1. Strategic Planning Integration
        1. Project Identification
          1. Project Screening
            1. Project Evaluation
              1. Project Selection
                1. Implementation and Control
                  1. Post-Audit Review
                  2. Project Classification
                    1. Replacement Projects
                      1. Replacement for Maintenance
                        1. Replacement for Cost Reduction
                        2. Expansion Projects
                          1. Expansion of Existing Products
                            1. Expansion into New Markets
                            2. New Product Development
                              1. Regulatory and Safety Projects
                                1. Other Projects
                                  1. Research and Development
                                    1. Strategic Projects
                                  2. Cash Flow Estimation
                                    1. Relevant Cash Flow Principles
                                      1. Incremental Cash Flows
                                        1. After-Tax Cash Flows
                                          1. Timing of Cash Flows
                                          2. Cash Flow Components
                                            1. Initial Investment Outlay
                                              1. Asset Cost
                                                1. Installation Costs
                                                  1. Working Capital Requirements
                                                    1. Opportunity Costs
                                                    2. Operating Cash Flows
                                                      1. Revenue Changes
                                                        1. Operating Cost Changes
                                                          1. Depreciation Tax Shield
                                                          2. Terminal Cash Flows
                                                            1. Salvage Value
                                                              1. Tax on Salvage Value
                                                                1. Working Capital Recovery
                                                              2. Special Considerations
                                                                1. Sunk Costs
                                                                  1. Opportunity Costs
                                                                    1. Externalities
                                                                      1. Inflation Effects
                                                                    2. Capital Budgeting Techniques
                                                                      1. Net Present Value
                                                                        1. NPV Calculation
                                                                          1. NPV Decision Rule
                                                                            1. NPV Profiles
                                                                            2. Internal Rate of Return
                                                                              1. IRR Calculation
                                                                                1. IRR Decision Rule
                                                                                  1. Multiple IRRs Problem
                                                                                  2. Modified Internal Rate of Return
                                                                                    1. MIRR Calculation
                                                                                      1. MIRR Advantages
                                                                                      2. Payback Period
                                                                                        1. Simple Payback Period
                                                                                          1. Discounted Payback Period
                                                                                            1. Payback Decision Rule
                                                                                            2. Profitability Index
                                                                                              1. PI Calculation
                                                                                                1. PI Decision Rule
                                                                                                  1. PI vs. NPV
                                                                                                2. Comparing Mutually Exclusive Projects
                                                                                                  1. Scale Differences
                                                                                                    1. Timing Differences
                                                                                                      1. NPV vs. IRR Conflicts
                                                                                                        1. Crossover Rate
                                                                                                          1. Reinvestment Rate Assumptions
                                                                                                          2. Capital Rationing
                                                                                                            1. Hard Capital Rationing
                                                                                                              1. Soft Capital Rationing
                                                                                                                1. Single-Period Rationing
                                                                                                                  1. Multi-Period Rationing
                                                                                                                  2. Risk Analysis in Capital Budgeting
                                                                                                                    1. Sensitivity Analysis
                                                                                                                      1. One-Variable Sensitivity
                                                                                                                        1. Multi-Variable Sensitivity
                                                                                                                        2. Scenario Analysis
                                                                                                                          1. Best Case Scenario
                                                                                                                            1. Worst Case Scenario
                                                                                                                              1. Most Likely Scenario
                                                                                                                              2. Monte Carlo Simulation
                                                                                                                                1. Probability Distributions
                                                                                                                                  1. Random Sampling
                                                                                                                                    1. Output Analysis
                                                                                                                                    2. Decision Trees
                                                                                                                                      1. Sequential Decisions
                                                                                                                                        1. Contingent Projects
                                                                                                                                          1. Real Options
                                                                                                                                          2. Risk-Adjusted Discount Rates
                                                                                                                                            1. Project-Specific Risk
                                                                                                                                              1. Divisional Cost of Capital

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                                                                                                                                          6. Risk and Return

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                                                                                                                                          8. Cost of Capital