Chapter Summaries
11.1 Understand how to identify the sources and types of profitable investment opportunities. (pgs. 330–332)
Summary:
Before a profitable project can be adopted, it must be identified. In general, the best source of ideas for potentially profitable investments is the firm itself. Specifically, the firm’s marketing and operations employees are rich sources of investment ideas.
Concept Check 11.1
What does the term capital budgeting mean?
Describe the two-phase process typically involved in carrying out a capital-budgeting analysis.
What makes a capital-budgeting project a good one?
What are the three basic types of capital investment projects?
11.2 Evaluate investment opportunities using the net present value and describe ...
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