Evaluate corporate finance decisions

Evaluate investments and capital allocation decisions

Comparing investments with different timing, scale, and risk profiles.

• · cash flows (timing and amount)
• · discount rate / cost of capital
• · project alternatives

• · NPV, IRR, payback period
• · break-even volume
• · capital structure recommendation (debt vs equity)

Cash flow projections and cost-of-capital estimate available

• · Non-conventional cash flows produce multiple IRRs
• · discount rate selection dominates sensitivity
• · working capital needs underestimated

• · NPV vs IRR decision rules
• · discount-rate dependency analysis
• · break-even formula with worked example