Capital Budgeting & Risk(英文版)(ppt 43页)

Capital Budgeting & Risk(英文版)内容提要：
Problems with Capital Budgeting
How to Handle Problems with CB
1 - Sensativity Analysis
2 - Break Even Analysis
3 - Monte Carlo Simulation (pg 251-252)
4 - Decision Trees
5 - Certainty Equivalent
Modeling Process：
Step 1: Modeling the Project
Step 2: Specifying Probabilities
Step 3: Simulate the Cash Flows
Risk,DCF and CEQ：
Example
Project A is expected to produce CF = $100 mil for each of three years. Given a risk free rate of 6%, a market premium of 8%, and beta of .75, what is the PV of the project?