Overview
Description
Develop critical analytical skills required to assess potential investment. Topics include the estimation of project cash flows, project cost of capital, risk analysis in capital budgeting, and corporate strategy.
Requirements
Prerequisites
FIN 301
Original catalog text
Prerequisites
Prerequisite(s): FIN 301.
Units
Lecture3
Catalog Details
Offering
Offered: Every Fall and Spring
Terms
fall, spring
Attributes
Standard
Learning Outcomes
- evaluate prospective investments using alternative capital budgeting methods.
- deal successfully with capital rationing and mutually exclusive projects and estimate project cash flows.
- account for real options to adjust the scope or scale of a project and incorporate risk in the capital-budgeting process.
- calculate a firm’s overall cost of capital and the divisional cost of capital.
- explain the relationship between corporate strategy and the capital budgeting process.