1. accept investment that have positive NPV
2. accept an investment that has a internal rate or return higher than the occ.
IRR = the discount rate that gives a NPV = 0
beware: you might have different irr. It happens when the signs of CF change.
give an example and explain that we just need a calculator
Recall:
When you're the financial manager, anytime you invest in a project with positive NPV, you make your company's shareholders better off. It's a fundamental result because this criteria is independant from the individual preferences of the shareholders.
Csq: separation of ownership and management is a practical necessity for large organizations.
Other methods for investment decisions >>
|
|
Corporate finance
The subject: corporate finance
PART ONE: CAPITAL EXPENDITURE
The present value
Investment
decisions
Practical
problems in capital budgeting
Firms evaluation
PART TWO. BASICS OF FINANCE
The financial
markets
Options
The market
efficiency
Risk
Mergers,
Acquisitions, and Corporate Control
International
Financial Management
PART THREE FINANCING DECISIONS
Corporate
financing
Dividend policy
and capital structure
PART FOUR FINANCIAL MANAGEMENT
Financial
planning
Short-term
financial management
Courses created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.
|