Read through your peers' posts and select one to comment upon (try to select a peer who hasn't received a comment). Use your comment to analyze their posted image using a different connection to t

3 - Background

CAPITAL BUDGETING AND THE COST OF CAPITAL

Required Reading

Start off the module by viewing these videos from Professor Roberts of the Wharton School of Business at the University of Pennsylvania and Professor Roberts of Rice University. These videos will give you a general overview of the key concepts of capital budgeting and the cost of capital:

Read through your peers' posts and select one to comment upon (try to select a peer who hasn't received a comment). Use your comment to analyze their posted image using a different connection to t 1 Roberts, M. (2017). Decision criteria. Coursera. Retrieved from: https://zh.coursera.org/learn/wharton-finance/lecture/hRuBX/decision-criteria

Weston, J. (2017) Putting it all together as WACC (weighted average cost of capital). Coursera. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/07ldB/putting-it-all-together-as-the-wacc-weighted-average-cost-of-capital

Read through your peers' posts and select one to comment upon (try to select a peer who hasn't received a comment). Use your comment to analyze their posted image using a different connection to t 2 Ross, S., Westerfield, R., & Jordan, B. (2007) Chapter 8: Net present value and other investment criteria. Essentials of Corporate Finance. McGraw Hill. http://novellaqalive2.mheducation.com/sites/dl/free/007000000x/484691/Part5_Chap8.pdf [If the link is down, click Net Present Value or Fundamentals of Corporate Finance for an alternative link]

Read through your peers' posts and select one to comment upon (try to select a peer who hasn't received a comment). Use your comment to analyze their posted image using a different connection to t 3 Ross, S., Westerfield, R., & Jordan, B. (2007) Chapter 12: Cost of capital. Essentials of Corporate Finance. McGraw Hill. Retrieved from: http://novellaqalive2.mheducation.com/sites/dl/free/007000000x/484691/Part7_Chap12.pdf
[If the link is down, click Cost of Capital or Fundamentals of Corporate Finance for an alternative link]

Finally, check out the following video that will show you how to make capital budgeting calculations using Excel:

Graulich, V. (2012). How to calculate NPV and IRR. IHateMath.com. Retrieved from: https://www.youtube.com/watch?v=kCnwCplibAk&t=230s

Hamilton, K. (2014). Excel NPV IRR. Retrieved from: https://www.youtube.com/watch?v=HTJh5yxphMs

If you still have difficulty with the material after reviewing the required materials, check out the optional materials below. Included are two additional videos, including one on using Excel to compute NPV and IRR. Also included are some additional book chapters that cover the same material but explain it in a slightly different way with different examples.

Optional Reading

BlueBookAcademy.com. (2015). Learn it FAST: Weighted average cost of capital explained. Retrieved from: https://www.youtube.com/watch?v=JIvokDfW9AQ&t=48s

Girvin, M. (2010). Investment criteria: NPV, IRR, payback, AAR, profitability index. Retrieved from: https://www.youtube.com/watch?v=U2aH4xH5Fz0

Fabozzi, F. J., & Peterson Drake, P. (2009). Chapter 14: Capital budgeting techniques. Finance: Capital markets, financial management, and investment management. Wiley. Available in the Trident Online Library.

Clive, M. (2012). Chapter 14: The cost of capital. Financial management for non-financial managers.Kogan Page. Available in the Trident Online Library.

Block, S. & Hirt, G. (2008). Chapter 12: The capital budgeting decision. Foundations of Financial Management. McGraw-Hill, Retrieved from: http://studylib.net/doc/8149455/12-the-capital-budgeting-decision