Robert Alan Hill Strategic Financial Management: Part I Download free books at Download free eBooks at bookboon.com 2 Robert Alan Hill Strategic Financial Management: Part I Introduction & The Investment Decision Download free eBooks at bookboon.com 3 Strategic Financial Management: Part I: Introduction & The Investment Decision 1 st edition © 2010 Robert Alan Hill & bookboon.com ISBN 978-87-7681-570-7 Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management: Part I 4 Contents Contents About the Author 7 Part One: An Introduction 8 1 Finance – An Overview 9 1.1 Financial Objectives and Shareholder Wealth 9 1.2 Wealth Creation and Value Added 11 1.3 e Investment and Finance Decision 12 1.4 Decision Structures and Corporate Governance 15 1.5 e Developing Finance Function 16 1.6 e Principles of Investment 20 1.7 Perfect Markets and the Separation eorem 22 1.8 Summary and Conclusions 25 1.9 Selected References 27 www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management: Part I 5 Contents Part Two: e Investment Decision 28 2 Capital Budgeting Under Conditions of Certainty 29 2.1 e Role of Capital Budgeting 30 2.2 Liquidity, Protability and Present Value 31 2.3 e Internal Rate of Return (IRR) 37 2.4 e Inadequacies of IRR and the Case for NPV 38 2.5 Summary and Conclusions 40 3 Capital Budgeting and the Case for NPV 41 3.1 Ranking and Acceptance Under IRR and NPV 42 3.2 e Incremental IRR 44 3.3 Capital Rationing, Project Divisibility and NPV 44 3.4 Relevant Cash Flows and Working Capital 46 3.5 Capital Budgeting and Taxation 47 3.6 NPV and Purchasing Power Risk 49 3.7 Summary and Conclusions 51 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers