“A mining company is evaluating a new project in a foreign country. Forecast cash flows are in local currency. The local currency has a 10% expected depreciation against the AUD per year. The company’s WACC in AUD is 12%. Explain two methods to correctly discount the foreign currency cash flows and compare their practical challenges.”
: Understanding hidden risks, leverage, and the impact of liquidity/slippage costs.
Students hate selling a losing stock because they want to "break even."
Disclaimer: Course structures for FINA3327 are subject to change by UNSW Sydney. Always consult the official UNSW Handbook and your current course outline.
The primary objective of FINA3327 is to move beyond the "what" of finance and explore the "how" and "why." Students are expected to transition from understanding basic definitions to applying quantitative models that drive real-world business decisions.