Project Analysis.pptVIP

Topics Covered How Firms Organize Their Investment Process Some “What If” Questions Sensitivity Analysis Break Even Analysis Flexibility in Capital Budgeting Decision Trees Options Capital Budgeting Process Capital Budget - The list of planned investment projects. The Decision Process 1 - Develop and rank all investment projects 2 - Authorize projects based on: Govt regulation Production efficiency Capacity requirements NPV Capital Budgeting Process Capital Budgeting Problems Consistent forecasts Conflict of interest Forecast bias Selection criteria (NPV and others) How To Handle Uncertain