By reading this chapter, you will…

  • Achieve basic analytical and conceptual skills required in the modern practice of corporate finance.
  • Understand how the time-value relationship of money impacts financial decisions, and how to apply that understanding to models for valuing financial assets and cash flow in a changing environment.
  • Understand the concept of risk as it applies to financial modeling, and to apply risk adjustment methods to financial modeling.
  • Utilize appropriate techniques for evaluating capital budgeting projects, including how to choose between alternative investments.