Principles of Managerial Finance, 15th Edition

Chapter 10 Capital Budgeting Techniques

Learning Goals

1. LG1 Understand the key elements of the capital budgeting process.

2. LG2 Calculate, interpret, and evaluate the payback period.

3. LG3 Calculate, interpret, and evaluate the net present value (NPV) and economic value added (EVA).

4. LG4 Calculate, interpret, and evaluate the internal rate of return (IRR).

5. LG5 Use net present value profiles to compare NPV and IRR techniques.

6. LG6 Discuss NPV and IRR in terms of conflicting rankings and the strengths of each approach.

MyLab Finance

Why this Chapter ...