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Economy & Finance Cost of capital

1. The Cost of Capital Timothy R. Mayes, Ph.D. FIN 3300: Chapter 11 2. What is the “Cost” of Capital?y When we talk about the “cost” of capital, we aretalking about…

Documents DISCOUNTED CASH FLOW APPLICATIONS. NET PRESENT VALUE (NPV) Net present value is the sum of the...

Slide 1DISCOUNTED CASH FLOW APPLICATIONS Slide 2 NET PRESENT VALUE (NPV) Net present value is the sum of the present values of all the positive cash flows minus the sum of…

Economy & Finance Capital budgeting (1)- Management accounting

1.Investment Decision Rules and Capital Budgeting Presented By Gopi Kumar V JMC Thrissur2. Investment Decision Rules • When faced with new investments, firms have to decide…

Documents Hurdle rates for Firms 04/09/07 Ch. 7. 2 Investment decision Firms should invest in projects that...

Slide 1 Hurdle rates for Firms 04/09/07 Ch. 7 Slide 2 2 Investment decision Firms should invest in projects that creates value for the firm’s shareholders These are projects…

Documents 1 The Cost of Capital Timothy R. Mayes, Ph.D. FIN 3300: Chapter 11.

Slide 1 1 The Cost of Capital Timothy R. Mayes, Ph.D. FIN 3300: Chapter 11 Slide 2 2 What is the “Cost” of Capital? v When we talk about the “cost” of capital, we…

Documents Risk Measurement and Hurdle Rates in Practice 04/09/08 Ch. 4.

Slide 1 Risk Measurement and Hurdle Rates in Practice 04/09/08 Ch. 4 Slide 2 2 Investment decision Firms should invest in projects that creates value for the firm’s shareholders…

Documents Hurdle rates for Firms (ch. 7)

Hurdle rates for Firms (ch. 7) 10/04/05 Investment decision Firms should invest in projects that creates value for the firm’s shareholders These are projects that yield…