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Wednesday, February 12, 2014

Lesson 10: Investment and Project Evaluation Techniques

Define net present value, payback period, internal rate of return, and profitability index.
Describe decision rules for each of the tools in objective 1, for both stand-alone 
        and  mutually exclusive projects.
Given cash flows, compute the NPV, payback period, internal rate of return for a given 
        project.
Compare each of the capital budgeting tools above, and tell why NPV always gives the 
        correct decision.

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