International MSc in Business Administration
Corporate Finance 07 A
Guilherme Almeida e Brito, Mário Meira
Required reading: Portfolio Theory: BMA: Chap. 7, 8 (9th edition: 8, 9).
Exercises to be prepared for November 20th: Iceberg, Innovation, NewDesign.
Exercises to be prepared for November 20th: Ross, Westerfield & Jaffe: 6.1, 6.9;
Exercises to be prepared for November 21th: Ibbotson, Macrasoft, Portfolio Theory;
Mandatory exercise to be handed in on November 22nd before 6:30pm: FunRide (instead of NewDesign).
Ross, Westerfield & Jaffe: 6.1 (adapted)
Fuji Software, Inc., has the following projects:
Year Project A Project B
0
-$7.500
-$5.000
1
4.000
2.500
2
3.500
1.200
3
1.500
3.000
Suppose you have determined that the appropriate…show more content… 6.1
a) Payback period
Cumulative
Cash Flows
Project
A
Project
B
0
(7.500)
(5.000)
1
(3.500)
(2.500)
2
3
0
(1.300)
1.500