2022 CFA Level II Exam: Study Session 10. Corporate Finance (1)

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

	1. Capital Budgeting: Introduction a. describe the capital budgeting process and distinguish among the various categories of capital projects;
	2. Basic Principles of Capital Budgeting b. describe the basic principles of capital budgeting; c. explain how the evaluation and selection of capital projects is affected by mutually exclusive projects, project sequencing, and capital rationing;
	3. Investment Decision Criteria d. calculate and interpret net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI) of a single capital project;
	4. NPV Profiles e. explain the NPV profile, compare the NPV and IRR methods when evaluating independent and mutually exclusive projects, and describe the problems associated with each of the evaluation methods;
	5. Comparison of the NPV and IRR Methods e. explain the NPV profile, compare the NPV and IRR methods when evaluating independent and mutually exclusive projects, and describe the problems associated with each of the evaluation methods;
	6. Popularity and Usage of the Capital Budgeting Method f. describe expected relations among an investment's NPV, company value, and share price.

I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

No flashcard found. Add a private flashcard for the reading.