Chapter 7: Investment Decision Rules
Partial Lecture NotesUnsolved Examples: Example 1IRR Excel Examples The spreadsheet I built to create the graphs in this lecture.
Homework problems from textbook: 4, 6, 14, 22, 31Spreadsheet assignment: Problem 6 from textbookNote: Check figures on Canvas under files
Chapter 8: Fundamentals of Capital Budgeting
Partial Lecture Notes
Section 2 on p. 30 of this paper has an excellent discussion on cash flow vs accrual accounting Note: Same paper I posted for chapter 2.Unsolved Examples: Example 1 (Updated to clarify on 3/23/2023. Answer unchanged); Example 2(Updated version posted on 10/18/2023)Homework problems from textbook: 3, 7, 9, 10, 18, 24Additional required homework problems I wroteNote: Check figures on Canvas under filesSpreadsheet assignments: Problems 10 and 24 from textbook.Note: For the spreadsheet for problem 10, assume:
1) the cost of the project is depreciated over the life of the project on a straight-line basis
2) cost of goods sold is a fixed percentage of sales (I plan to change this percentage when checking spreadsheets).
3) taxes are a fixed percentage of net operating income (I plan to change this percentage when checking spreadsheets).
4) When checking spreadsheets, I will give all dollar amounts in thousands (like most of the information in the textbook). Thus, initial given values: sales = 30,000; capital expenditure = 25,000; net working capital = 10,000.
Chapter 9: Valuing Stocks
Partial Lecture NotesUnsolved Examples: Examples
Discounted FCF Excel ExampleHomework problems from textbook: 3, 10, 13, 15, 21, 26, 32Additional required homework problems I wrote Note: Check figures on Canvas under filesSpreadsheet assignments: Problem 1 from version A of the final on 12/13/16
Problem 5 from version A of the final on 12/10/15.