1. Identify "relevant" cash flows that should and should not be included in a capital budgeting analysis. 2. Estimate a project's relevant cash flows and put them into a time line format that can be used to calculate a project's NPV, IRR, and other capital budgeting metrics: 3. Explain how risk is measured, and use this measure to adjust the firm's WACC to account for differential project riskiness. 4. Caiculate the NPV of mutually exclusive projects. 5. Explain three reasons why corporate risk is important even if a firm's stockholders are well diversified. 6. Identify two reasons why stand-alone risk is important. 7. Demonstrate sensitivity and scenario analyses and explain Monte Carlo simulation. 8. Discuss the two methods used to incorporate risk into capital budgeting decisions. 1. Identify "relevant" cash flows that should and should not be included in a capital budgeting analysis. 2. Estimate a project's relevant cash flows and put them into a time line format that can be used to calculate a project's NPV, IRR, and other capital budgeting metrics: 3. Explain how risk is measured, and use this measure to adjust the firm's WACC to account for differential project riskiness. 4. Caiculate the NPV of mutually exclusive projects. 5. Explain three reasons why corporate risk is important even if a firm's stockholders are well diversified. 6. Identify two reasons why stand-alone risk is important. 7. Demonstrate sensitivity and scenario analyses and explain Monte Carlo simulation. 8. Discuss the two methods used to incorporate risk into capital budgeting decisions