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Unformatted text preview: o Know fundamentals, expected value o Make sure you are working with present value figures for cash flows o If the total expected value (EV) of a set of outcomes is positive, then the project is justified o Sum of all probabilities is 1.00 (100%)-Chapter 11 depreciation o Accounting concept book value doesnt equal market value. o Know asset disposal o Dont worry about other depreciation methods other than what is on slides-Chapter 12 o Ignore individual taxes-Chapter 13 o 3 techniques o Know what minimum cost life is-Chapter 14 o Know CPI consumer price index, know that value (benchmarked, where it was last year, know the trends o Know why inflation occurs-Chapter 15 o Sources of capital for companies, etc.-NO CHAPTER 16!!!!-Chapter 17 Current events-Financial regulation-Inflation and deflation **********-Debt crisis in Europe-Sovereign debt-Credit spreads TED spread o Measuring -...
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- Winter '10