Capital Budgeting Essay

2383 words - 10 pages

OUTLINE OF MBA 520
Fall Semester 2008
Business Finance

Instructor: Grant McQueen Teaching Assistants: Mark Cherrington &
Office: 636 TNRB Christian Hsieh
Phone: 422-3017 Office: 324 TNRB
Office Hours: MW 2:00 - 3:00 p.m. Phone: 422-6835
e-mail: Office hours: forthcoming
Home page:

Course Description and Objectives
This course introduces basic financial concepts all business managers should understand regardless of functional specialization. Topics include financial analysis and planning, time value of money, valuation, capital budgeting, risk/return trade-offs, cost of capital, and capital structure.
The pedagogical approach used is a mixture of ...view middle of the document...

This is because the cases tend to bring together many aspects of finance at once. Be patient, the concepts will gradually all fall into place as you move through the semester.

Computers and Calculators: The case discussions require you to be fluent in a basic spreadsheet such as Excel. You will also want to have access to either a business calculator, such as an HP 10B, 12C 19BII or equivalent, or to Excel which can be used as a calculator. Using a calculator or Excel, you should be able to compute the net present value (NPV) and the internal rate of return (IRR) on an uneven stream of cash flows.

Packet: A packet of photocopied supplemental material is available at the bookstore. The packet includes teaching notes, cases, and practice tests.

Additional Optional Material: Copies of the overheads are available on my web page and on blackboard. The solutions to all of the homework problems and hard copies of the overheads are available at the 5th floor copy center. A CD comes with the text book and includes Self Study Software, Corporate Finance Online Tutorials, and Narrated PowerPoint Slides. A Student Problem Manual (ISBN 0073282154) is available and the authors maintain a free Online Learning Center at www.mhhe.com/rwj.

TAs and tutors: Mark Cherrington and Christian Hsieh will hold regular office hours for individual help and will hold help sessions that work through homework problems and old tests.

Grading
Grading for the course will be based on the following:

|Class preparation (verbal and quizzes) 15% |
|Two written cases on 10/2 & 12/8 30% |
|Midterm on 10/20 20% |
|Final exam (finals week) 12/15 to 12/19 35% |
|Total 100% |

Class Preparation: Each session may begin with a 5-minute quiz concerning the assigned readings, problem sets, or case. The purpose of the quiz is to encourage you to keep up to date in class and to give me feedback on how well you comprehend the material. Quizzes also give the instructor some idea about your preparation and level of understanding. Your lowest quiz score will be dropped.

Two Written Cases: The cases will be analyzed by learning teams and are due on the dates indicated. Case write-ups should be no longer than 4 pages (not including figures and exhibits). The papers should not include a cover or cover-page; rather, the first page should be an executive summary. The executive summary must include the names of the team members and can be single spaced. The next three double spaced pages should include your analysis of the case including clearly stated recommendations. All exhibits, such as spreadsheets, figures, and tables, should be clearly labeled and referenced. When...

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