After studying this chapter you will be able to: Explain the time value of money concept, determine and interpret the net present value of an investment opportunity, determine and interpret the internal rate of return of an investment opportunity, evaluate investment opportunities using the payback method and the unadjusted rate of return. | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16: Planning for Capital Investments 10- Learning Objectives Explain the time value of money concept and apply it to capital investment decisions. Determine the present value of future cash flows. Determine and interpret the net present value of an investment opportunity. Determine and interpret the internal rate of return of an investment opportunity. Identify cash flows associated with an investment opportunity. Compare capital investment alternatives. Determine the payback period for an investment opportunity. Determine the unadjusted rate of return for an investment opportunity. Conduct a postaudit of a completed investment. In this chapter, the learning objectives are: Explain the time value of money concept and apply it to capital investment decisions. Determine the present value of future cash flows. Determine and interpret the net present value of an investment opportunity. . | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16: Planning for Capital Investments 10- Learning Objectives Explain the time value of money concept and apply it to capital investment decisions. Determine the present value of future cash flows. Determine and interpret the net present value of an investment opportunity. Determine and interpret the internal rate of return of an investment opportunity. Identify cash flows associated with an investment opportunity. Compare capital investment alternatives. Determine the payback period for an investment opportunity. Determine the unadjusted rate of return for an investment opportunity. Conduct a postaudit of a completed investment. In this chapter, the learning objectives are: Explain the time value of money concept and apply it to capital investment decisions. Determine the present value of future cash flows. Determine and interpret the net present value of an investment opportunity. Determine and interpret the internal rate of return of an investment opportunity. Identify cash flows associated with an investment opportunity. Compare capital investment alternatives. Determine the payback period for an investment opportunity. Determine the unadjusted rate of return for an investment opportunity. Conduct a postaudit of a completed investment. 10- Capital Investment Decisions Purchases of long-term operational assets are capital investments. Once a company purchases operational assets, it is committed to these investments for an extended period of time. Understanding the time value of money concept will help you make rational capital investment decisions. 10- Purchases of long-term operational assets are capital investments. Once a company purchases operational assets, it is committed to these investments for an extended period of time. Understanding the time value of money concept will help you make rational capital investment decisions. Time Value of Money .
