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Unformatted text preview: The firm’s current balance sheet is the result of past capital budgeting decisions. Perhaps the most important decision managers make is determination of which capital projects to accept. Will they ENHANCE or DESTROY company value? In this chapter, we analyze the methods used for making these important capital budgeting decisions . * Mind Map Learning Objectives: * Articulate the desired attributes of a capital budgeting methodology * Determine whether a project is acceptable based on Payback, NPV, and IRR * Discuss the weaknesses of payback and IRR so that NPV is the preferred evaluation technique * Mind Map Key Words/Concepts: * Payback Period * Net Present Value * Internal Rate of Return * Cash Flow Patterns...
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This note was uploaded on 11/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.
- Summer '11