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.