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Present Values 3
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Lecture1.1
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Lecture1.2
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Lecture1.3
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NPV vs. IRR 4
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Lecture2.1
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Lecture2.2
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Lecture2.3
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Lecture2.4
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Other Profit Measures 4
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Lecture3.1
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Lecture3.2
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Lecture3.3
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Lecture3.4
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Depreciation 4
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Lecture4.1
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Lecture4.2
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Lecture4.3
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Lecture4.4
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Cash Flow Challenges 9
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Lecture5.1
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Lecture5.2
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Lecture5.3
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Lecture5.4
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Lecture5.5
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Lecture5.6
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Lecture5.7
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Lecture5.8
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Lecture5.9
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Capital Asset Pricing Model 3
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Lecture6.1
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Lecture6.2
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Lecture6.3
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Risky Debt 3
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Lecture7.1
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Lecture7.2
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Lecture7.3
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Unlevering Equity 3
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Lecture8.1
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Lecture8.2
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Lecture8.3
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Weighted Average Cost of Capital 4
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Lecture9.1
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Lecture9.2
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Lecture9.3
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Lecture9.4
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Debt Effect Analysis 2
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Lecture10.1
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Lecture10.2
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WACC Challenge 2
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Lecture11.1
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Lecture11.2
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Relative Valuation 4
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Lecture12.1
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Lecture12.2
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Lecture12.3
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Lecture12.4
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Forward Contract Valuation 3
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Lecture13.1
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Lecture13.2
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Lecture13.3
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Introduction
Depreciation is the accounting term for how the value of machinery and equipment goes down or depreciates over time. The reason it is relevant for corporate finance is because it tends to give us a “tax shield”. You subtract the cost of depreciation each year before taxes, so you end up not being taxed on whatever income goes towards depreciation.
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Investment Timing
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The Basic Problem