Study Session 8 - Capital Budgeting

By Jim on 3/04/2010 11:02:00 PM

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#CFA Did a PassMaster session on the first part of SS8 tonight. Not too bad. Corp Finance was a strong area for me in school and on L1 so I expect to do well here on L2.



I probably should have started doing this much earlier, but I'm going to begin listing what I feel are my strengths and weaknesses in each Study Session so I know where to focus come review time. I'll try to go back thru the earlier SS's and ID areas I'm strong at and can gloss over and areas where I need to really reread the material and do lots of problems. I'll start with this SS and make it a habit to list them after I quiz myself.



Strengths







  • Using the EAA(Equivalent Annual Annuity) approach







  • Effects on inflation on Budgeting







  • Capital Rationing







  • Project Risk Analysis and Market Risk







  • Real Options







  • Budgeting Pitfalls







  • Budgeting Alternatives






Weaknesses









  • Projecting Cash Flows - This stuff isn't hard, I just need to go thru it top to bottom again to drill it home. Started to get it after I went thru the quiz questions a 2nd time.






I also began reading the next section in SS8 to get a headstart on the weekend. Will be taking tomorrow off to rest a bit and actually experience life before taking the weekend to finish SS8 and start SS9.






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