Skip to Content
Fundamentals of Corporate Finance, Second Edition
book

Fundamentals of Corporate Finance, Second Edition

by Robert Parrino, David S. Kidwell, Thomas W. Bates
October 2011
Beginner
778 pages
36h 16m
English
Wiley
Content preview from Fundamentals of Corporate Finance, Second Edition

12

Evaluating Project Economics and Capital Rationing

image

Learning Objectives

image Explain and demonstrate how variable costs and fixed costs affect the volatility of pretax operating cash flows and accounting operating profits.

image Calculate and distinguish between the degree of pretax cash flow operating leverage and the degree of accounting operating leverage.

image Define and calculate the pretax operating cash flow and accounting operating profit break-even points and the crossover levels of unit sales for a project.

image Define sensitivity analysis, scenario analysis, and simulation analysis and describe how they are used to evaluate the risks associated with a project.

image Explain how the profitability index can be used to rank projects when a firm faces capital rationing and describe the limitations that apply to the profitability index.

In March 2010 MaxLinear Inc. (MXL) went public, and shares of its ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

Robert Parrino
Corporate Finance, 6th Edition

Corporate Finance, 6th Edition

Pierre Vernimmen, Pascal Quiry, Yann Le Fur

Publisher Resources

ISBN: 9780470876442Purchase book