P: F523 or F301 or equivalent. This course develops a working knowledge
of capital budgeting. The beginning of the course focuses on the
application of traditional capital budgeting criteria, the determination

of cash flows for capital budgeting purposes, and the determination of
the appropriate cost of capital. Next, alternative
methodologies/concepts such as Adjusted Present Value (APV), Economic
Value Added (EVA), and valuing investment opportunities as Real Options
are examined. Case studies are utilized to emphasize how these
techniques can be applied to improve the capital allocation process.