This lesson examines financial planning models, the role and dimensions of financial planning, sustainable growth rate, planning horizon, aggregation, scenario analysis, pro forma statements, and steps for financial planning and creating a pro forma balance sheet. Focus is on practical tools and assessments for business growth and contingency management.
This lesson explains the estimation of cost of capital, including calculations for debt, equity, and preference shares. It discusses WACC, CAPM application, risk analysis (sensitivity, scenario, simulation), risk-adjusted discount rates, and certainty equivalents for practical risk management in project investments.
This lesson details capital budgeting evaluation methods, including discounted and non-discounted cash flow techniques (NPV, IRR, PI, payback). It tackles mutually exclusive projects, capital rationing, multiple IRR issues, and post-completion audits, supporting students in making sound investment appraisal decisions
This lesson focuses on the nature and process of capital budgeting, types of capital budgeting decisions, project proposal classification, estimation principles for various cash flows, and terminal value calculations. Practical illustrations highlight risk, project screening, and decision-making processes for long-term investments.
This covers a systematic approach to solving time value of money problems, using real-world timelines and reference points for cash flows. It covers step-by-step methods, interpolation techniques, and provides a mini case study applying concepts for retirement and college funding plans.