Tuesday, 12 May 2015

Chapter 23 Capital Investment

After studying this Chapter 23 Capital Investment, you should be able :
  1. Describe the difference between independent and mutually exclusive capital investment decisions.
  2. Explain the roles of the payback period and accounting rate of return in capital investment decisions.
  3. Calculate the net present value (NPV) for independent projects.
  4. Compute the internal rate of return (IRR) for independent projects.
  5. Tell why NPV is better than IRR for choosing among mutually exclusive projects.
  6. Convert gross cash flows to after-tax cash flows.
  7. Describe the capital investment for advanced technology and environmental impact settings.

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