Book excerpt: Greetings. It is my wish that these notes equip the reader in at least two ways. First, I would like the reader to gain knowledge in identifying ways to improve operating, investing, and financing activities. Second, I would like the reader to learn the use of tools for project selection, project risk assessment, and project risk management.These lecture notes were designed to supplement, not replace, the text by Brigham and Daves (2010). Throughout the notes you will find questions to check your understanding of the material. These questions also foster classroom interaction. Also, I have intentionally left out numerical example details to encourage note taking during class. Numerical examples will be worked in class so you can fill in the blanks. These lecture notes are organized into three parts. Part I covers the fundamental concepts of financial management. The concepts range from risk and return calculations to financial statement analysis. Part II utilizes the concepts of Part I to forecast financial statements, compute the cost of capital, and to make decisions that increase corporate value.While Part II is focused on broader issues in corporate value, Part III is focused on project selection concepts. Part III includes detailed discussions on project selection criteria, project risk assessment, and managing project risk using real options.