Capital Budgeting Decisions
- Investment in long term assets.
- Capital budgeting evaluation
- Pay back period
- NPV and IRR.
- Profitability Index
- Post audit
Faculty may refer to the Reading Material in Learning Unit 4 for information on
the above topics for presentation/
Visual - Aid 28: Measurement of Risk
Measurement of Risk
- Forecasting risk
- Risk and returns
- Risk adjusted discount rate
- Sensitivity analysis
- Standard deviation to measure risk
- Decision Tree approach
- Utility Theory
Faculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation
Visual Aid – 29: Cost of Capital, including CAP-M
Cost of Capital, including CAP-M
- Measurement techniques of cost of capital
- Wealth maximization approach
- Explicit and Implicit costs
- Debt financing
- Weighted average cost of capital
- Capital Asset Pricing Model
- Rationale of CAP-M
Faculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation