Chapter 11 Study Plan

Knowledge Targets

I can define the following terms as they relate to our unit:

Payback period

Investment Cash Flows Net Cash Flow
Capital Budgeting Cost of Capital Rate of return Time value of money
Reasoning Targets

  • I can determine the payback period for an investment.
  • I can rank investment projects in order of preference using payback period and rate of return.
  • I can understand the time value of money.


Skill Targets

  • I can calculate the payback period for an investment.
  • I can evaluate investments using payback period and rate of return.
  • I can compute the rate of return for an investment.
  • I can evaluate investment projects with uncertain cash flows.


Click Capital Budget for a printable copy.

Licenses and Attributions

More Study Resources for You

Show More