Finance an der Technische Hochschule Nürnberg

Changes in NWC cannot be found in the P&L

If PV is higher than the initial investment you should realize the project

An annuity is a set payment received for a set period of time. Perpetuities are set payments received forever—or into perpetuity. Perpetuities are valued using the actual interest rate.

The IRR tells us how much we earn within a project per unit of invested capital

If we have to choose between 2 investment projects, the IRR sends us into the wrong direction because it is based on different investments amounts

It is about how companies raise money they need for realizing their investment proects that have a positive NPV

The major difference between a partnership and a joint share company is, that within a partnership there is always one investor, who is unlimitedly liable, whereas at a joint share company, the investors can only lose the amount of money that they have invested into the company

A stock index is a combination of different stocks that are all put togehter in one number to show if the stock market increases or decreases as a whole.

The market capitalization of free float is the the weight for the DAX

payments to equity holders are never risky.

To get the PV of stocks we have to discount the selling price of the stock and the cash flow that will be paid out.

It is about how to make good investment decisions