Financial Analysis for Corporate Decisions

  • 7-weeks
  • 1.5 credits
  • Prerequisite: MBA Core

Note: This course does not count for credit towards a finance major or minor. The target audience is non-majors. Finance students may take this course as a free elective.

The MBA core courses establish the economic and organizational context in which corporate resource allocation decisions take place. This course extends the discussion, considering practical problems of implementation, the evaluation of uncertainty in the cash flows, and various interdependencies that influence the decision. The course will integrate theory and practice, facilitated through the use of spreadsheets and simulation analysis, in order to provide the student with cutting-edge capital budgeting analysis tools. The theme of creating value for shareholders will permeate the entire course. Case analysis and presentation are a central focus of the course.

  • Review of the capital expenditure decision process - dynamic versus static
  • Problems associated with interdependent projects: how to determine incremental cash flows
  • Unequal lived projects: which is really the best alternative?
  • The role of strategic considerations and intangibles in project selection
  • Determining appropriate discount rates by organizational unit and project
  • Capital investment projects as options for the future
  • Post audit of capital expenditures
  • Simulation analysis
  • EVA

Case and readings packet assembled by the instructor. Textbook from Functional Core as reference.Grades will be based on exams, individual assignments, and group case analysis.

Kelley School of Business

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