5.International investment and financing decisions (二)教学内容 第一节 1.主要内容 Discounted cash flow techniques 2.基本概今和知识点 a)Evaluate the potential value added to an organisation arising from a specified capital investment project or portfolio using the net present value (NPV)）model Project modelling should include explicit treatment and discussion of: i)Inflation and specific price variation ii)Taxation including tax allowable depreciation and tax exhaustion iii)Single period and multi-period capital rationing.Multi-period capital rationing to include the formulation of programming methods and the interpretation of their output iv)Probability analysis and sensitivity analysis when adjusting for risk and uncertainty in investment appraisal v)Risk adjusted discount rates vi)Project duration as a measure of risk. b)Outline the application of Monte Carlo simulation to investment appraisal.Candidates will not be expected to undertake simulations in an examination context but will be expected to demonstrate an understanding of: i)The significance of the simulation output and the assessment of the likelihood of project success ii)The measurement and interpretation of project value at risk. c)Establish the potential economic return (using internal rate of return (IRR)and modified internal rate of return)and advise on a project's return margin.Discuss the relative merits of NPV and IRR. 3.问题与应用 a)What is NPV? b)What is IRR? c)Compare NPV and IRR. 第二节 1.主要内容 Application of option pricing theory in investment decisions9 5. International investment and financing decisions （二）教学内容 第一节 1.主要内容 Discounted cash flow techniques 2.基本概念和知识点 a) Evaluate the potential value added to an organisation arising from a specified capital investment project or portfolio using the net present value (NPV) model. Project modelling should include explicit treatment and discussion of: i) Inflation and specific price variation ii) Taxation including tax allowable depreciation and tax exhaustion iii) Single period and multi-period capital rationing. Multi-period capital rationing to include the formulation of programming methods and the interpretation of their output iv) Probability analysis and sensitivity analysis when adjusting for risk and uncertainty in investment appraisal v) Risk adjusted discount rates vi) Project duration as a measure of risk. b) Outline the application of Monte Carlo simulation to investment appraisal. Candidates will not be expected to undertake simulations in an examination context but will be expected to demonstrate an understanding of: i) The significance of the simulation output and the assessment of the likelihood of project success ii) The measurement and interpretation of project value at risk. c) Establish the potential economic return (using internal rate of return (IRR) and modified internal rate of return) and advise on a project’s return margin. Discuss the relative merits of NPV and IRR. 3. 问题与应用 a) What is NPV? b) What is IRR? c) Compare NPV and IRR. 第二节 1.主要内容 Application of option pricing theory in investment decisions