**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.