Every project is fundamentally made up of cash flows. An investor may rent a factory, buy raw materials, hire workers, manufacture a product or fund an advertising campaign, all with the purpose of selling a product or service to make a profit. Every part of the project or investment opportunity...

Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate the cost of capital and perform a valuation. An organization’s capital structure, specifically the amount of leverage and debt financing employed, must be accounted for to...