- San Francisco
Student teams in the Managerial Finance class assess the economic viability of a proposed capital investment. These projects are ideal for organizations or departments considering a financial investment in a new physical asset, a new product or service, expansion of operations into a new territory, or acquisition of another business.
The student team evaluates their partner’s proposed investment by selecting and applying the most appropriate of the financial analysis and capital budgeting tools taught in the course, including Net Present Value (NPV), Internal Rate of Return (IRR), Terminal Value, Payback Period, Discounted Profitability, and other return measures like Social Return on Investment (SROI).
The project will answer the questions, “What is the value of the project? Is this a sound investment?” Different methods of valuation, such as NPV, IRR, Terminal Value, etc, can be applied as appropriate, and will be supported by the students’ sensitivity analyses and cost of capital calculations.
The team will present their findings to their partner in a verbal presentation, along with a written document and various spreadsheets that can be updated as the values for certain variables change. Worksheets generally include Cash Flow Projections, Profit and Loss Statements, and Balance Sheet Projections.
*Note: EL Finance projects can be done for companies of all sizes and for non-profits, for-profits, and government agencies, as long as they are able to provide at least 1-2 years of historic data.