Learning Objectives Distinguish between deductions for and from AGI Discuss the criteria for deducting business and investment deducting travel and entertainment or List the substantiation requirements fo expenses Explain the timing of deductions under both the cash and accrual methods

Chapter Objective: This chapter discusses various issues associated with foreign direct investments by MNCs, which play a key role in shaping the nature of the emerging global economy

INVESTMENTS Fourth Edition Efficient Market Hypothesis (EMHD Do security prices reflect information Why look at market efficiency Implications for business and corporate finance Implications for investment

Course overview The focus of this course is on financial theory and empirical evidence that are useful for investment decisions. The topics include: Financial theory: This include portfolio theory, CAPM, APT, discount factor model, they are important for decision-making in investments;

Capital Budgeting and Estimating Cash Flows The Capital Budgeting Process Generati ng Investment Project Proposals Estimatin

Solow growth model 1. Production function(total; per capita) 2. Savings investment schedule 3. Depreciation 4. Steady state 5. Golden rule 6. Path from one steady state to the Golden Rule steady state

Microeconomics behind Macroeconomics Consumption Investment Money and Advances in business cycle model

Topics Covered SHow Firms Organize Their Investment Process Some\What If Questions Sensitivity analysis Break Even Analysis SFlexibility in Capital Budgeting Decision Trees Options

Chapter organization Introduction International Labor mobility International Borrowing and Lending Direct Foreign Investment and Multinational Firms Summary Appendix: More on Intertemporal Trade

Complaint management is an Investment Cost of customer acquisition vs retention Loyal Word of mouth(p positive or negative) Information for design changes Compensation may exceed price