Session 1 – Basic of corporate finance
• Shareholder wealth maximization
- Cash flows
- Risk
- Timing of returns
• Role of the professional accountant in creating value and formulating decisions
- Working capital decisions
- Long-term capital decisions
- Financing decisions
- Dividend decisions
• Time value of money in long-term analysis
- Present value calculations
- Conventional cash flows
- Uneven cash flows
- Ordinary annuity
- Annuity due

Session 2 – Capital investment process and types of capital investment decisions
• Investment process
- Proposing projects
- Financial analysis
- Accepting project proposals
- Implementation
- Monitoring of projects’ performance
• Types of capital investment decisions
- Acquisition versus replacement decisions
- Independent versus mutually exclusive projects
- Unlimited funding versus capital rationing
- Simple accept-reject decision versus project ranking approach

Caselette 1 – Group work

• 

  Jesse Rey L. Meneses

Session 3 – Calculating the relevant cash flows
• Basic terminology
• Calculating the project or investment costs
- Capital expenditures
- Working capital needed
- Other costs
• Calculating after-tax operating cash inflows

Caselette 2 – Individual work

Session 4 – Techniques for analyzing capital investment proposals
• Payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability index
• Conflicting rankings
• Comparing projects with uneven lives

• 

  Jesse Rey L. Meneses