Principles of Managerial Finance9th Edition.ppt

Principles of Managerial Finance9th Edition Chapter 10 Learning Objectives Understand the importance of explicitly recognizing risk in the analysis of capital budgeting projects. Discuss breakeven cash flow, sensitivity and scenario analysis, and simulation as behavioral approaches for dealing with risk, and the unique risks facing multinational companies. Describe the two basic risk-adjustment techniques in terms of NPV and the procedures for applying the certainty equivalent (CE) approach. In the context of the capital budgeting projects discussed in this chapter, risk results almost entire