Financial Management: Principles and Applications, 13/e

Part 3 Capital Budgeting

Chapter 11 Investment Decision Criteria

Chapter Outline

1. 11.1 An Overview of Capital Budgeting (pgs. 330–332)

   1. Objective 1. Understand how to identify the sources and types of profitable investment opportunities.

2. 11.2 Net Present Value (pgs. 332–340)

   1. Objective 2. Evaluate investment opportunities using the net present value and describe why it is the best measure to use.

3. 11.3 Other Investment Criteria (pgs. 340–355)

   1. Objective 3. Use the profitability index, internal rate of return, and payback criteria to evaluate investment opportunities.

4. 11.4 A Glance at Actual Capital-Budgeting Practices (pgs. 355–357)

   1. Objective 4. Understand current business practice with respect to the use of capital-budgeting ...