Acknowledgement We would like to acknowledge all the help we have received from our lecturer in collecting the data and using the cases. Besides‚ every member in our group is contributed in completing the report averagely. Abstract: Investment appraisal techniques are adopted to assess whether or not capital expenditure on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain
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Corporate Finance Syllabus Spring 2009 Prof. Anna Scherbina UC Davis Graduate School of Management Office: 126 AOB IV Tel: 530.754.8076 e-mail: ascherbina@ucdavis.edu Course Focus We will explore how corporations make financial decisions through the analysis of Harvard Business School cases. Should a firm undertake a new investment opportunity‚ raise equity‚ acquire another firm‚ or conduct an IPO? How should small firms manage their working capital? How fast should a firm grow
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Chapter 06 Discounted Cash Flow Valuation Multiple Choice Questions 1. An ordinary annuity is best defined by which one of the following? A. increasing payments paid for a definitive period of time B. increasing payments paid forever C. equal payments paid at regular intervals over a stated time period D. equal payments paid at regular intervals of time on an ongoing basis E. unequal payments that occur at set intervals for a limited period of time 2. Which one of the following
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The 4 Traps: 1. Conflict Causes Low income Slow growth‚ stagnation‚ or even decline Dependence on primary commodity exports (oil‚ diamonds) Geography (huge with dispersed population‚ mountainous‚ Nepal is a good example) Prior history Costs/Consequences Lasts more than 5 years‚ on average 15% poorer Military spending - $64 billion Social costs: Deaths Diseases Deterioration in political rights Legacy of organized killing - cheap guns‚ number of homicides Refugees → costs beyond frontiers (epidemics
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will make the firm and its investors wealthier. This point is one of the central and most powerful ideas in finance‚ which we call the Valuation Principle: The value of an asset to the firm or its investors is determined by its competitive market price. The benefits and costs of a decision should be evaluated using these ©2011 Pearson Education 20 Berk/DeMarzo • Corporate Finance‚ Second Edition market prices‚ and when
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Quiz 1 1. The raw fundamental data on the human genome cannot be patented but the genes and gene-based discoveries can. 2. The map of the human genome produced by Collins and his co-workers is available from the internet for free all over the world. In other words‚ the map of the human genome created by the HGP is a public good. 3. Celera genomics has no patent over the human genome. However‚ celera does have proprietary rights over its version of that genome. It is private good. Quiz
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Discounting rate 12% PV of cash flows 9‚887‚890 using the PV function NPV (112‚110) We now calculate the PV of debt tax shield Year Debt Outstanding at Start of Year Interest Interest Tax Shields Present Value of Tax Shields 1 5‚000‚000 400‚000 140‚000 129‚630 2 4‚500‚000 360‚000 126‚000 108‚025 3 4‚000‚000 320‚000 112‚000 88‚909 4 3‚500‚000 280‚000 98‚000 72‚033 5 3‚000‚000 240‚000 84‚000 57‚169 6 2‚500‚000 200‚000 70
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(ASICs) for industrial customers. The ASIC’s design combines analog and digital‚ or mixed-signal‚ technology. In addition to Tom and Jessica‚ Nolan Pittman‚ who provided capital for the company‚ is the third primary owner. Each owns 25 percent of the 1 million shares outstanding. The company has several other individuals‚ including current employees‚ who own the remaining shares. Recently‚ the company designed a new computer motherboard. The company’s design is both more efficient and less expensive
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Lecture 1 （Chapter 1） Introduction to Corporate Finance McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies‚ Inc. All rights reserved. 会计循环 会计循环过程 原始凭证 记账凭证 记账 过账结算 试算平衡 报表编制 总账 分类账 明细账 基本原则：账证相符、账账相符、账表相符、账实相符 1-1 财务管理的基本框架 企业规模 理财环境 目标利润 筹资渠道 财务策略 财务预算 筹资方式 财务目标 短期投资 股利理论 总体分析 营运资金管理 股利政策 指标分析 成本控制 股利方式 综合分析 资金预测 资金筹集 资金投放 收益分配 财务分析 时间价值 资金成本 财务关系 风险分析 资金结构 实业投资 税务政策 分析方法 证券投资 发展规模 分析报告 财务关系 财务管理制度 1-2 财会管理的构架
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FV/1+r FV (simple without compounding) = PV (1+r) PV (compounding) = FV / (1+r)n FV (compounding) = PV (1+r)n PV (for monthly‚ daily or bi-annually basis) = FV / (1+r/m)n*m FV (for monthly‚ daily or bi-annually basis) = PV(1+r/m)n*m To find interest rate: FV = PV (1+r(?))n (FV and PV are given) APR (Annual Present Rate) = r * Total days in a year/given days In Excel: =RATE(n‚pmt‚PV) EAR (Effective Annual Rate) OR EAY (Effective Annual Yield): EAR/EAY = [1+r/m]m – 1
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