This lecture discusses project valuation and capital budgeting. It introduces estimating a company's weighted average cost of capital (WACC) as the hurdle rate for projects. It also covers estimating incremental free cash flows from projects and using time-weighted tools like net present value (NPV) and internal rate of return (IRR) to evaluate whether projects will create or destroy shareholder value based on exceeding the WACC. The key steps are determining the WACC, estimating cash flows, and using tools like NPV and IRR to analyze project value.
Vulnerability assessment & Penetration testing Basics Mohammed Adam
In these days of widespread Internet usage, security is of prime importance. The almost universal use of mobile and Web applications makes systems vulnerable to cyber attacks. Vulnerability assessment can help identify the loopholes in a system while penetration testing is a proof-of-concept approach to actually explore and exploit a vulnerability.
What is Penetration & Penetration test ?Bhavin Shah
Penetration testing (also called pen testing) is the practice of testing a computer system, network or Web application to find vulnerabilities that an attacker could exploit.
Information technology is a complex business, at best. While IT can provide amazing benefits, it still requires vigilance and diligence to ensure it is running correctly and that it is secure. A security framework can be an excellent tool to evaluate what you might be missing and confirm that what you are already doing is spot-on correct. This session will discuss the importance of using security frameworks and walk attendees through the NIST Cyber Security Framework to review how the framework functions, how to use a framework, and most importantly, how the use of a framework can and will benefit their organization.
Cyber Security Trends
Business Concerns
Cyber Threats
The Solutions
Security Operation Center
requirement
SOC Architecture model
SOC Implementation
SOC & NOC
SOC & CSIRT
SIEM & Correlation
-----------------------------------------------------------
Definition
Gartner defines a SOC as both a team, often operating in shifts around the clock, and a facility dedicated to and organized to prevent, detect, assess and respond to cybersecurity threats and incidents, and to fulfill and assess regulatory compliance. The term "cybersecurity operation center "is often used synonymously for SOC.
A network operations center (NOC) is not a SOC, which focuses on network device management rather than detecting and responding to cybersecurity incidents. Coordination between the two is common, however.
A managed security service is not the same as having a SOC — although a service provider may offer services from a SOC. A managed service is a shared resource and not solely dedicated to a single organization or entity. Similarly, there is no such thing as a managed SOC.
Most of the technologies, processes and best practices that are used in a SOC are not specific to a SOC. Incident response or vulnerability management remain the same, whether delivered from a SOC or not. It is a meta-topic, involving many security domains and disciplines, and depending on the services and functions that are delivered by the SOC.
Services that often reside in a SOC are:
• Cyber security incident response
• Malware analysis
• Forensic analysis
• Threat intelligence analysis
• Risk analytics and attack path modeling
• Countermeasure implementation
• Vulnerability assessment
• Vulnerability analysis
• Penetration testing
• Remediation prioritization and coordination
• Security intelligence collection and fusion
• Security architecture design
• Security consulting
• Security awareness training
• Security audit data collection and distribution
Alternative names for SOC :
Security defense center (SDC)
Security intelligence center
Cyber security center
Threat defense center
security intelligence and operations center (SIOC)
Infrastructure Protection Centre (IPC)
مرکز عملیات امنیت
Vulnerability assessment & Penetration testing Basics Mohammed Adam
In these days of widespread Internet usage, security is of prime importance. The almost universal use of mobile and Web applications makes systems vulnerable to cyber attacks. Vulnerability assessment can help identify the loopholes in a system while penetration testing is a proof-of-concept approach to actually explore and exploit a vulnerability.
What is Penetration & Penetration test ?Bhavin Shah
Penetration testing (also called pen testing) is the practice of testing a computer system, network or Web application to find vulnerabilities that an attacker could exploit.
Information technology is a complex business, at best. While IT can provide amazing benefits, it still requires vigilance and diligence to ensure it is running correctly and that it is secure. A security framework can be an excellent tool to evaluate what you might be missing and confirm that what you are already doing is spot-on correct. This session will discuss the importance of using security frameworks and walk attendees through the NIST Cyber Security Framework to review how the framework functions, how to use a framework, and most importantly, how the use of a framework can and will benefit their organization.
Cyber Security Trends
Business Concerns
Cyber Threats
The Solutions
Security Operation Center
requirement
SOC Architecture model
SOC Implementation
SOC & NOC
SOC & CSIRT
SIEM & Correlation
-----------------------------------------------------------
Definition
Gartner defines a SOC as both a team, often operating in shifts around the clock, and a facility dedicated to and organized to prevent, detect, assess and respond to cybersecurity threats and incidents, and to fulfill and assess regulatory compliance. The term "cybersecurity operation center "is often used synonymously for SOC.
A network operations center (NOC) is not a SOC, which focuses on network device management rather than detecting and responding to cybersecurity incidents. Coordination between the two is common, however.
A managed security service is not the same as having a SOC — although a service provider may offer services from a SOC. A managed service is a shared resource and not solely dedicated to a single organization or entity. Similarly, there is no such thing as a managed SOC.
Most of the technologies, processes and best practices that are used in a SOC are not specific to a SOC. Incident response or vulnerability management remain the same, whether delivered from a SOC or not. It is a meta-topic, involving many security domains and disciplines, and depending on the services and functions that are delivered by the SOC.
Services that often reside in a SOC are:
• Cyber security incident response
• Malware analysis
• Forensic analysis
• Threat intelligence analysis
• Risk analytics and attack path modeling
• Countermeasure implementation
• Vulnerability assessment
• Vulnerability analysis
• Penetration testing
• Remediation prioritization and coordination
• Security intelligence collection and fusion
• Security architecture design
• Security consulting
• Security awareness training
• Security audit data collection and distribution
Alternative names for SOC :
Security defense center (SDC)
Security intelligence center
Cyber security center
Threat defense center
security intelligence and operations center (SIOC)
Infrastructure Protection Centre (IPC)
مرکز عملیات امنیت
Basics in IT Audit and Application Control Testing Dinesh O Bareja
IT Audit and Application Control Testing are large and complex activities in themselves, and it is my presentation to share the basics here, based on my own experience and using guidance from IIA GTAGs.
As delusions of effective risk management for application environments continue to spread, companies continue to bleed large amounts of security spending without truly knowing if the amount is warranted, effective, or even elevating security at all. In parallel, hybrid, thought-provoking security strategies are moving beyond conceptual ideas to practical applications within ripe environments. Application Threat Modeling is one of those areas that, beyond the hype, provides practical and sensible security strategy that leverages already existing security efforts for an improved threat model of what is lurking in the shadows.
Tony UcedaVelez, Managing Director
An experienced security management professional, Tony has more than 10 years of hands-on security and technology experience and is a vocal advocate of security process engineering – a term that describes the design and development of secure processes and controls working symbiotically to create a unique business workflow. Tony currently serves as Managing Director for an Atlanta based risk advisory firm that focuses on security strategy and delivering effective means for risk mitigation and security process engineering. He has worked and consulted for the Fortune 500, as well as federal agencies in the U.S. on the topic of application security and security process engineering.
Mastering Information Technology Risk ManagementGoutama Bachtiar
This is the presentation slide as part of the courseware utilized when delivering Information Technology Risk Management training - workshop on May 2013.
Risk Analysis Of Banking Malware AttacksMarco Morana
Analysis of How Banking Malware Like Zeus Exploit Weakenesses In On-Line Banking Applications and Security Controls. This prezo is a walkthrough the attack scenarion, the attack vectors, the vulnerability exploits and the techniques to model the threats so that countermeasures can be identified
Certified in Risk and Information Systems Control™ (CRISC™) is the most current and rigorous assessment which is presently available to evaluate the risk management proficiency of IT professionals and other employees within an enterprise or financial institute.
CRISC help enterprises to understand business risk, and have the technical knowledge to implement appropriate IS controls.
This CRISC Certification training course accredited by ISACA is ideal for IT professionals, risk professionals, control professionals, business analysts, project managers, compliance, professionals and more.
To know more about CRISC Certification training worldwide,
please contact us at -
Email: support@invensislearning.com
Phone - US +1-910-726-3695,
Website: https://www.invensislearning.com
Data Warehousing is a data architecture that separates reporting and analytics needs from operational transaction systems. This presentation is an introduction into traditional data warehousing architectures and how to determine if your environment requires a data warehouse.
CONTROL & AUDIT INFORMATION SYSTEM (HALL, 2015)Muhammad Azmy
Materi Perkuliahan Control and Auditing Information System in Uin Suska Riau.
About Fundamental and Theory Control and Audit. Where this Slide just Theory, not spesific because it just job from teacher in the class.
CISA Domain 1 The Process On AUDITING INFORMATION SYSTEMSShivamSharma909
ISACA IS Audit and Assurance Standards, Guidelines, and Tools & Techniques, Code of Professional Ethics & other applicable standard.
https://www.infosectrain.com/blog/cisa-domain-1-part-3-the-process-on-auditing-information-systems/
Presentation given by Dr. Diego Kuonen, CStat PStat CSci, on November 20, 2013, at the "IBM Developer Days 2013" in Zurich, Switzerland.
ABSTRACT
There is no question that big data has hit the business, government and scientific sectors. The demand for skills in data science is unprecedented in sectors where value, competitiveness and efficiency are driven by data. However, there is plenty of misleading hype around the terms big data and data science. This presentation gives a professional statistician's view on these terms and illustrates the connection between data science and statistics.
The presentation is also available at http://www.statoo.com/BigDataDataScience/.
Cyber Security Layers - Defense in Depth
7P's, 2D's & 1 N
People
Process
Perimeter
Physical
Points (End)
Network
Platform
Programs (Apps)
Database
Data
Basics in IT Audit and Application Control Testing Dinesh O Bareja
IT Audit and Application Control Testing are large and complex activities in themselves, and it is my presentation to share the basics here, based on my own experience and using guidance from IIA GTAGs.
As delusions of effective risk management for application environments continue to spread, companies continue to bleed large amounts of security spending without truly knowing if the amount is warranted, effective, or even elevating security at all. In parallel, hybrid, thought-provoking security strategies are moving beyond conceptual ideas to practical applications within ripe environments. Application Threat Modeling is one of those areas that, beyond the hype, provides practical and sensible security strategy that leverages already existing security efforts for an improved threat model of what is lurking in the shadows.
Tony UcedaVelez, Managing Director
An experienced security management professional, Tony has more than 10 years of hands-on security and technology experience and is a vocal advocate of security process engineering – a term that describes the design and development of secure processes and controls working symbiotically to create a unique business workflow. Tony currently serves as Managing Director for an Atlanta based risk advisory firm that focuses on security strategy and delivering effective means for risk mitigation and security process engineering. He has worked and consulted for the Fortune 500, as well as federal agencies in the U.S. on the topic of application security and security process engineering.
Mastering Information Technology Risk ManagementGoutama Bachtiar
This is the presentation slide as part of the courseware utilized when delivering Information Technology Risk Management training - workshop on May 2013.
Risk Analysis Of Banking Malware AttacksMarco Morana
Analysis of How Banking Malware Like Zeus Exploit Weakenesses In On-Line Banking Applications and Security Controls. This prezo is a walkthrough the attack scenarion, the attack vectors, the vulnerability exploits and the techniques to model the threats so that countermeasures can be identified
Certified in Risk and Information Systems Control™ (CRISC™) is the most current and rigorous assessment which is presently available to evaluate the risk management proficiency of IT professionals and other employees within an enterprise or financial institute.
CRISC help enterprises to understand business risk, and have the technical knowledge to implement appropriate IS controls.
This CRISC Certification training course accredited by ISACA is ideal for IT professionals, risk professionals, control professionals, business analysts, project managers, compliance, professionals and more.
To know more about CRISC Certification training worldwide,
please contact us at -
Email: support@invensislearning.com
Phone - US +1-910-726-3695,
Website: https://www.invensislearning.com
Data Warehousing is a data architecture that separates reporting and analytics needs from operational transaction systems. This presentation is an introduction into traditional data warehousing architectures and how to determine if your environment requires a data warehouse.
CONTROL & AUDIT INFORMATION SYSTEM (HALL, 2015)Muhammad Azmy
Materi Perkuliahan Control and Auditing Information System in Uin Suska Riau.
About Fundamental and Theory Control and Audit. Where this Slide just Theory, not spesific because it just job from teacher in the class.
CISA Domain 1 The Process On AUDITING INFORMATION SYSTEMSShivamSharma909
ISACA IS Audit and Assurance Standards, Guidelines, and Tools & Techniques, Code of Professional Ethics & other applicable standard.
https://www.infosectrain.com/blog/cisa-domain-1-part-3-the-process-on-auditing-information-systems/
Presentation given by Dr. Diego Kuonen, CStat PStat CSci, on November 20, 2013, at the "IBM Developer Days 2013" in Zurich, Switzerland.
ABSTRACT
There is no question that big data has hit the business, government and scientific sectors. The demand for skills in data science is unprecedented in sectors where value, competitiveness and efficiency are driven by data. However, there is plenty of misleading hype around the terms big data and data science. This presentation gives a professional statistician's view on these terms and illustrates the connection between data science and statistics.
The presentation is also available at http://www.statoo.com/BigDataDataScience/.
Cyber Security Layers - Defense in Depth
7P's, 2D's & 1 N
People
Process
Perimeter
Physical
Points (End)
Network
Platform
Programs (Apps)
Database
Data
A Guide to capital budgeting and need for valuationArpit Amar
How a finance manager takes investment and financing decision and why and under what circumstances valuation of business in necessary is described in this presentation.
This presentation was made during my MBA program in Germany
Understand the nature and importance of investment decisions.
Distinguish between discounted cash flow (DCF) and non-discounted cash flow (non-DCF) techniques of investment evaluation.
Explain the methods of calculating net present value (NPV) and internal rate of return (IRR).
Show the implications of net present value (NPV) and internal rate of return (IRR).
Describe the non-DCF evaluation criteria: payback and accounting rate of return and discuss the reasons for their popularity in practice and their pitfalls.
Illustrate the computation of the discounted payback.
Describe the merits and demerits of the DCF and Non-DCF investment criteria.
Compare and contract NPV and IRR and emphasise the superiority of NPV rule.
Basic terms review
Capital budgeting introduction
Capital budgeting technique
Sensitivity analysis
Scenario analysis
present value
potential difficulties and strength of capital budgeting
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
2. Lecture Overview
Orientation
What projects do we invest in?
Estimating a Cost of Capital
Hurdle Rate
Weighted Average Cost of Capital
Estimating Incremental Free Cash flows
Time-weighted tools
NPV
IRR
Others
Summary
2
3. Where we are in the course
The first two modules focused on the building
blocks of finance which are common
throughout the field.
Time Value of Money
Bonds and Stocks
Risk and Return (e.g. CAPM)
Starting this week and for the remainder of the
course we will focus more on issues at the
firm-level.
This week focuses on how managers select
the projects a firm should undertake.
This is known as “Project Valuation” or
3 “Capital Budgeting.”
4. What Projects Do We Invest In?
A firm can be thought of as a collection of
projects.
We saw earlier in the course that the primary goal
of the firm is to maximize shareholder value.
Selecting the right projects is the key to
maximizing shareholder value.
Because of this managers need financial tools to
help them evaluate among prospective projects.
We call this process, “Capital Budgeting,” as it
involves the long-term allocation of a firm’s capital
resources.
4
5. What Projects Do We Invest In?
In order to decide what to invest in we need three
things:
A return threshold or hurdle rate
The expected incremental cash flows related to the
project
An analysis to stitch the above two items together
5
6. Return Threshold (Hurdle Rate)
We have discussed previously the costs of debt
and equity.
Cost of debt:
Interest rates,
Yield to Maturity
Yield to Call
Cost of equity:
The required return that equity holders need to be fairly
compensated
This was estimated with the “CAPM”
6
7. Return Threshold (Hurdle Rate)
Moreover, we know that firms raise their capital
through some combination of these instruments.
(The details of how they choose such a
combination will be discussed in subsequent
modules.)
A firm that employs Debt (D) and Equity (E), at
rates of rd and re, respectively, should be
investing in things that (at least) covers these
capital costs.
7
8. Weighted Average Cost of Capital
(WACC)
We can calculate a blended cost that weighs the
required returns of each source of capital by their
weights.
We call this the Weighted Average Cost of Capital
(WACC)
WACC = rd x Percentage of Debt + re x Percentage
of Equity
This is often simply written as: rd x D + re x E
Note, the cost of debt (rd) should be the after-tax cost of
debt, because interest on debt payments are deductable
from a firm’s net income.
8
9. Weighted Average Cost of Capital
(WACC)
Example of the WACC
A company has debt of $200 million and equity of
$300 million. The after-tax cost of debt is 6% and
the cost of equity is 14%.
%Debt = $200 million / ($200 million + $300 million) = 40%
%Equity = 1 - %Debt = 60%
WACC = rd x D + re x E
= 6% x 40% + 14% x 60%
= 2.4% + 8.4%
= 10.8%
This means the company must invest in projects
that earn at least 10.8% annually, otherwise it is
9 destroying value.
10. Cash Flows
The next item we need is an estimate of how
much cash our new project is expected to provide
over its life-time.
The most common way to create an estimate of
the cash flow (the cash that will flow-in from our
project) is to create pro forma financial
statements (income statement, balance
sheet, etc.) based on what we think is going to
happen over the life of the project.
Once created, we can manipulate the financial
statements to determine the cash that comes in
or goes out in a given period.
10
11. Free Cash Flows
The cash we are interested in estimating is the
cash that will be available to be used to pay our
financing (the debt and equity)
This is termed the Free Cash Flow (FCF)
because we are free to use it to pay for the
financing of the project.
FCF = Operating Cash Flow – Investment in
Operating Capital
= (EBIT – Taxes + Depreciation) – (Investment in
Fixed Assets + Investment in Working Capital)
11
12. Incremental Cash Flows
Note, we are only interested in cash that relates
specifically to undertaking this new venture
(called the incremental cash flow).
For example, if we have already invested in R&D for
the project we would not include that amount in our
analysis because it has no bearing on our decision
to move forward with the project – the money has
already been spent (it’s a “sunk” cost).
12
13. Putting these items together
Once we know:
Our cost of capital (as represented by the WACC)
Our estimate of the free cash flows related to the
project
We can then use these in one of many
techniques to make an informed capital budgeting
decision.
The most common such techniques are the Net
Present Value (NPV) and the Internal Rate of
Return (IRR).
Fortunately, both of these relate directly to our
13
Time-Value-of-Money calculations we worked with
earlier in the course.
14. Net Present Value
Let’s say we have the following free cash flow
projection for a project:
Year 0: -$100,000
Year 1: $20,000
Year 2: $25,000
Year 3: $50,000
Year 4: $75,000
Additionally, let’s say the WACC for the company
is 9.0%.
We can use the TVM analysis to calculate the
Present Value of each period and then add them
up to get a Net Present Value estimate.
14
15. Net Present Value
Year Cash Flow PVIF PV
0 $ (100,000) $ (100,000) Based on this
1 $ 20,000 0.917 $ 18,349 analysis the project
2 $ 25,000 0.842 $ 21,042
should generate
3 $ 50,000 0.772 $ 38,609
4 $ 75,000 0.708 $ 53,132
$31,132 of economic
NPV $ 31,132 value in present
value terms.
WACC 9.00%
15
16. Net Present Value
Positive NPV projects (i.e. where the value is greater than
zero) create economic value because they pay for their
capital costs.
Negative NPV projects destroy value because capital
costs are not adequately covered.
16
17. Internal Rate of Return
While the NPV has an output in dollar terms
sometimes it is useful to have a rate (percentage)
output from our capital budgeting tool.
The IRR analysis is most common for this.
The IRR is defined to be the discount rate which
produces an NPV of 0.
The next slide shows this for our prior example.
17
18. Internal Rate of Return
Year Cash Flow PVIF PV In this case the IRR is
0 $(100,000) $ (100,000) 19.63%.
1 $ 20,000 0.836 $ 16,718 We can then compare
2 $ 25,000 0.699 $ 17,467 the IRR to the required
3 $ 50,000 0.584 $ 29,201
hurdle rate (the
4 $ 75,000 0.488 $ 36,613
NPV $ -
WACC).
When the IRR > WACC
IRR 19.63% the project is creating
value.
When the IRR < WACC
the project is destroying
value.
18
19. Other Capital Budgeting Tools
While the NPV and IRR are the most important and
commonly used capital budgeting tools, they are not the
only ones.
Other common tools include:
Payback Period
Discounted Payback Period
Modified IRR
Profitability Index
Most frequently, financial analysts will use several of
these tools to make an informed view on how to
proceed with a project.
19
20. Summary
This lecture more formally began our exploration
into “Corporate Financial Management”
The first step is to determine what projects a firm
should choose to undertake.
Deciding what to invest in (capital budgeting)
involves:
Calculating the company’s WACC or relevant cost
of capital.
Estimating the incremental Free Cash Flows from
the project.
Using our capital budgeting tools to analytically
determine value creation or value destruction:
20
NPV, IRR and other tools