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%) and an examination (80%).