FINC20010  Capital Budgeting

Within a framework of modern economic and finance theories, this course presents a clear conception of how to evaluate capital investment proposals and the techniques for evaluating the economic worth of such proposals. These techniques are aimed at facilitating sound capital-budgeting decision-making in a business firm. Topics include an overview of capital budgeting, net present value method, certainty equivalent method, risk-adjusted discount rate method, sensitivity analysis, simulation, multinational capital budgeting, property investment analysis, and application of linear programming to handle resource constraints. Assessment is by one assignment (20 per cent) and an examination (80 per cent).