Final Exam Review

Final Exam Review - ASICS 401 Fall 2010 Prof. Mitton Final...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ASICS 401 Fall 2010 Prof. Mitton Final Exam Review Disclaimer: This sheet is intended to be an aid in your preparation for the exam. It is intended to summarize some key points from the course, and no claim is made that it represents a comprehensive review of all concepts covered. Anything covered in class, assigned readings, problems sets, and computer labs may appear on the exam. This sheet covers only the last section of the course, whereas the final exam covers all sections of the course. I. DCF Analysis A. Why cash flows and not profits B. Free cash flow formula FCF = EBIT(1-t) + Depn. – CAPX – NWC 1. Details of elements a. Depreciation: Straight line vs. MACRS b. NWC: Increase is outflow; decrease is inflow 2. Inferring FCF from financial statements C. Rules for projecting cash flows 1. Only incremental CFs 2. Treat inflation consistently 3. After-tax CFs 4. Financing costs not included D. Project valuation 1. Initial CFs 2. Annual CFs 3. Terminal CFs a. Sale/disposal of PPE
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Final Exam Review - ASICS 401 Fall 2010 Prof. Mitton Final...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online