BUDGETING

Module 3 – Background Reading

CAPITAL BUDGETING AND THE COST OF CAPITAL

Required Reading

Begin learning about investment decisions and capital budgeting by reading through the following chapters:

Fabozzi, F. J., & Peterson Drake, P. (2009). Chapter 14: Capital budgeting techniques. In Finance: Capital markets, financial management, and investment management. Wiley. Available in the Trident Online Library.

Advani, R. (2018). Chapter 8: Cost of capital. In The Wall Street MBA: Your personal crash course in corporate finance (3rd ed.). McGraw-Hill. ISBN:9781260135596. Available in the Skillsoft Books database through the Trident Online Library.

Next, view the video that explains Weighted Average Cost of Capital (WACC):

BlueBookAcademy.com. (2015, July 17). Learn it FAST: Weighted average cost of capital explained [Video file]. Retrieved from  https://www.youtube.com/watch?v=JIvokDfW9AQ&t=48s

Finally, check out the following videos that will show you how to make capital budgeting calculations using Excel:

Graulich, V. (2012, June 25). How to calculate NPV and IRR [Video file]. Retrieved from  https://www.youtube.com/watch?v=kCnwCplibAk&t=230s

danthehokie. (2012, June 28). Using Excel to calculate NPV and IRR [Video file]. Retrieved from  https://youtu.be/lWY3abc4hz0