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Business LibreTexts

11.1: Chapter 11 Study Plan

  • Page ID
    10674
  • Knowledge Targets

    I can define the following terms as they relate to our unit:

    Payback period
    Investment Cash Flows Net Cash Flow
    Capital Budgeting Cost of Capital Rate of return Time value of money

    Reasoning Targets

    • I can determine the payback period for an investment.
    • I can rank investment projects in order of preference using payback period and rate of return.
    • I can understand the time value of money.

    Skill Targets

    • I can calculate the payback period for an investment.
    • I can evaluate investments using payback period and rate of return.
    • I can compute the rate of return for an investment.
    • I can evaluate investment projects with uncertain cash flows.

    Click Capital Budget for a printable copy.