Lecture 10: Real-World Applications of NPV

Business & Economics - Lecture 10: Real-World Applications of NPV - 11 slides

Explore Lecture 10: Real-World Applications of NPV, covering In the final lecture of the NPV course, students explore the real-world applications of Net Present Value (NPV) through.

Topics Covered

  • Lecture 10: Introduction to Real-World Applications of NPV
  • Refresher: Core Formula and Calculation Steps
  • Case Study 1: Energy Sector – Evaluating a Wind Farm Investment
  • Case Study 2: Technology Sector – Evaluating Innovations and R&D Investments
  • Common Pitfalls in Practical Applications of NPV
  • Case Study 3: Healthcare Sector – Pharmaceutical Drug Development
  • Breaking Down Sensitivity Analysis: A Practical Framework
  • Case Study 4: Real Estate Sector – NPV in Property Development
  • Case Study 5: Government Infrastructure Projects – Analyzing Public Investments
  • Case Study 6: Retail Sector – Evaluating Store Expansion Projects
  • Conclusion: Real-World Application Insights & Integrating NPV with Strategy

References

  • Damodaran, A. (2012) Investment Valuation: Tools and Techniques. 3rd edn. Hoboken: Wiley.
  • Ross, S., Westerfield, R. and Jaffe, J. (2019) Corporate Finance. 12th edn. New York: McGraw-Hill Education.
  • Fisher, I. (1930) The Theory of Interest. New York: Macmillan.
  • Hull, J. (2018) Options, Futures, and Other Derivatives. 10th edn. Pearson.
  • Damodaran, A. (2012) Investment Valuation. 3rd edn. Hoboken: Wiley.
  • Trigeorgis, L. (1996) Real Options: Managerial Flexibility and Strategy in Resource Allocation. Cambridge: MIT Press.
  • Brealey, R.A., Myers, S.C. and Allen, F. (2020) Principles of Corporate Finance. 13th edn. New York: McGraw-Hill Education.
  • Damodaran, A. (2012) ‘Valuation approaches in pharmaceutical projects’.
  • Geltner, D. and Miller, N. (2017) Commercial Real Estate Analysis and Investments. 4th edn. Chicago: OnCourse Publishing.
  • UK Treasury (2020) The Green Book: Central Government Guidance on Appraisal and Evaluation.
  • Gramlich, E. (1994) Infrastructure Investment: A Review Essay. Journal of Economic Literature, 32(3): 1176-1196.
  • Dhar, T. and Hoch, S.J. (2017) Store Formats and Retail Strategies. Oxford University Press.
  • Brealey, R.A., Myers, S.C, and Allen, F. (2020) Principles of Corporate Finance. 13th edn. New York: McGraw-Hill Education.
  • Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard: Translating Strategy Into Action. Harvard Business School Press.
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