Principles of Finance: Cash Flows and Earnings

This lecture covers the fundamental concepts of finance related to cash flows and earnings. It explains the importance of discounting cash flows, incremental cash flows, and the distinction between earnings and actual cash flows. The lecture also delves into the impact of sunk costs, opportunity costs, and the adjustments needed to translate earnings into free cash flows. Additionally, it discusses working capital adjustments, capital expenditures, and the principles governing accounting earnings measurement.