Easy Energy is an interactive case focused on project finance. Students must consider the opportunity to invest in a solar panel installation from the points-of-view of the different stakeholders: the company the managers of the capital risk fund initiating the project the shareholders and possibly a co-investor. Finally they must make decisions regarding the launch of the project the debt structure and the inclusion of a co-investor.
Summaries of the data for the different options allow the student to easily see the effect of changing various parameters of the analysis. The case includes a comprehensive Excel spreadsheet that can be downloaded so that the calculations can be analyzed in depth and changes in the different parameters tested. The multimedia case also contains two screencast videos with commentary which explain the most important aspects of the spreadsheet.
This multimedia tutorial teaches students how to calculate the weighted average cost of capital (WACC). It also shows interactive graphs where the students can analyze the effects of equity beta asset beta and the financing mix of the company on the WACC and the NPV. These graphs are complemented by several exercises.
At the end of the tutorial a simple practical case about the correct procedure to use for calculating the WACC when a company is going to float on the stock market is included. This section is complemented by links to websites where the financial information needed to complete the exercise can be found (equity betas from different sectors and their financing mix). .
This interactive tutorial demonstrates the concept of time value of money and how it is applied in the evaluation of investment opportunities. Two basic tools that rely on this concept the Net Present Value (NPV) and the Internal Rate of Return (IRR) are described and compared to each other and to some more intuitive alternative methods.
These numerical techniques are explained in an easily-understood visual manner through a series of interactive graphs and animations. Questions and numerical exercises throughout allow students to apply these concepts and reinforce the learning objectives.
This interactive tool has been designed to complement the paper based tutorial also included which provides a more in depth discussion of the concepts and their application.