What is the difference between book value and market value? Which should we use for decision making purposes?

What is the difference between accounting income and cash flow? Which do we need to use when making decisions?

What is the difference between average and marginal tax rates? Which should we use when making financial decisions?

How do we determine a firms cash flows? What are the equations, and where do we find the information?

How do you standardize balance sheets and income statements?

Why is standardization useful?

What are the major categories of financial ratios?

How do you compute the ratios within each category?

What are some of the problems associated with financial statement analysis?

How is the future value of a single cash flow computed?

How is the present value of a series of cash flows computed.

What is the Net Present Value of an investment?

What is an EAR, and how is it computed?

What is a perpetuity? An annuity?

What factors determine our consumption next year?

How do investment opportunities create value?

Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.

What is the payback period?

What is the discounted payback period?

What is the NPV?

What is the IRR?

Should we accept the project?

What method should be the primary decision rule?

When is the IRR rule unreliable?

Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.

What is the payback period?

What is the discounted payback period?

What is the NPV?

What is the IRR?

Should we accept the project?

What method should be the primary decision rule?

When is the IRR rule unreliable?

What is the difference between book value and market value? Which should we use for decision making purposes? What is the difference between accounting income and cash flow? Which do we need to use when making decisions? What is the difference between average and marginal tax rates? Which should we use when making financial decisions? How do we determine a firm's cash flows? What are the equations, and where do we find the information? How do you standardize balance sheets and income statements? Why is standardization useful? What are the major categories of financial ratios? How do you compute the ratios within each category? What are some of the problems associated with financial statement analysis? How is the future value of a single cash flow computed? How is the present value of a series of cash flows computed. What is the Net Present Value of an investment? What is an EAR, and how is it computed? What is a perpetuity? An annuity? What factors determine our consumption next year? How do investment opportunities create value? Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years. What is the payback period? What is the discounted payback period? What is the NPV? What is the IRR? Should we accept the project? What method should be the primary decision rule? When is the IRR rule unreliable? Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years. What is the payback period? What is the discounted payback period? What is the NPV? What is the IRR? Should we accept the project? What method should be the primary decision rule? When is the IRR rule unreliable