Lecture 2: Understanding Cash Flows

Business & Economics - Lecture 2: Understanding Cash Flows - 10 slides

Explore Lecture 2: Understanding Cash Flows, covering This lecture focuses on the various types of cash flows used in Net Present Value (NPV) calculations essential for.

Topics Covered

  • Introduction to Cash Flows in NPV Calculations
  • Understanding Operating Cash Flows
  • Understanding Investment Costs in NPV Calculations
  • Estimating Expected Revenues in NPV
  • Cash Flow Forecast Accuracy: Strategies and Pitfalls
  • Cash Flow Timing in NPV Calculations
  • Advanced Cash Flow Adjustments in NPV Calculations
  • Evaluating Uncertainty with Scenario and Sensitivity Analyses
  • Using Real Options in NPV Analysis
  • Summary and Conclusion: Comprehensive NPV Analysis

References

  • Ross, S.A., Westerfield, R.W., and Jaffe, J. (2020). Corporate Finance. 12th edn. New York: McGraw-Hill Education.
  • Berk, J. and DeMarzo, P. (2020). Corporate Finance. 5th edn. Boston: Pearson.
  • Brealey, R.A., Myers, S.C. and Allen, F. (2020) Principles of Corporate Finance. 13th edn. New York: McGraw-Hill.
  • Copeland, T.E. and Weston, J.F. (2005) Financial Theory and Corporate Policy. 4th edn. Boston: Pearson.
  • Damodaran, A. (2012) Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Hoboken: Wiley.
  • Damodaran, A. (2002) Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. 2nd edn. Wiley.
  • McKinsey & Company (2005) Valuation: Measuring and Managing the Value of Companies. 5th edn. Wiley.
  • Trigeorgis, L. (1996) Real Options: Managerial Flexibility and Strategy in Resource Allocation. MIT Press.
  • Ross, S.A., Westerfield, R.W., and Jaffe, J. (2019) Corporate Finance. 12th edn. McGraw Hill.
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