Solve problems related toTime value of moneyInvestment appraisalInvestment timingLong-term financingShort-term financingLeasingGain a thorough understanding of how to use tools in appraising investment opportunitiesTransfer theoretical knowledge to real world financial decision making

Students will elaborate problems on:Time value of money, net present value, annuities, perpetuitiesNPV with investment opportunities, payback, internal rate of return,Investment timing,  replacement decisionsShort term financing, working capital line of credit, trade creditLong term financing, raising equity and debt capitalLeasingAll problems will only be stated in class. Students will then work on finding the solution and finally present it.

This course will extend the theoretical foundations of capital budgeting & financing presented in the lecture (601.666). This is achieved by working on practical problem statements.

VO Capital Budgeting & Financing (601.666)

Brealey, Myers, Allen (2014). Principles of Corporate Finance, Global edition.Berk, DeMarzo (2011). Corporate Finance, 2nd edition.

Elaborate and present problems related to capital budgeting and financingClosed book exam

Time value of money, net present value, annuities, perpetuitiesNPV with investment opportunities, payback, internal rate of return,Investment timing,  replacement decisionsShort term financing, working capital line of credit, trade creditLong term financing, raising equity and debt capitalLeasing

50% - solving and presenting problems in class50% - closed book exam at the end of the semester