{"id":953,"date":"2016-01-01T14:28:44","date_gmt":"2016-01-01T14:28:44","guid":{"rendered":"https:\/\/courses.candelalearning.com\/managacct2x1xmaster\/?post_type=chapter&#038;p=953"},"modified":"2016-01-01T14:29:01","modified_gmt":"2016-01-01T14:29:01","slug":"chapter-11-key-points","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-managacct\/chapter\/chapter-11-key-points\/","title":{"raw":"Chapter 11 Key Points","rendered":"Chapter 11 Key Points"},"content":{"raw":"<h2>Key Takeaways \u2013 Capital Budgeting<\/h2>\r\n<ul>\r\n\t<li>Capital Budgeting looks at the purchase of long term plant assets or investments.<\/li>\r\n<\/ul>\r\n<ul>\r\n\t<li>Capital Budgeting can use simple techniques that do not take the present value of $1 into account (remember, a dollar is not worth the same as it was 20 years ago).<\/li>\r\n<\/ul>\r\n<ul>\r\n\t<li>Payback period provides you with an idea of how long it will take to earn back the money you paid for the asset. It is calculated as Cost of Investment \/ Net Cash Flow<\/li>\r\n<\/ul>\r\n<ul>\r\n\t<li>Net Cash Flow refers to the after-tax net income of a company with any non-cash expenses added back in (like Depreciation).<\/li>\r\n<\/ul>\r\n<ul>\r\n\t<li>Accounting Rate of Return provides you with an idea of how many cents of after-tax net income you earn of every dollar of your investment. It is calculated as after-tax net income \/ average investment.<\/li>\r\n<\/ul>\r\n<ul>\r\n\t<li>Average Investment for the rate of return is calculated as the Beginning Book Value (or Cost of investment) + Salvage value (or Ending book value) divided by 2<\/li>\r\n<\/ul>\r\nClick <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1430\/2016\/03\/04031457\/capital-budget-key-points.pdf\">capital budget key points<\/a> for a printable copy.","rendered":"<h2>Key Takeaways \u2013 Capital Budgeting<\/h2>\n<ul>\n<li>Capital Budgeting looks at the purchase of long term plant assets or investments.<\/li>\n<\/ul>\n<ul>\n<li>Capital Budgeting can use simple techniques that do not take the present value of $1 into account (remember, a dollar is not worth the same as it was 20 years ago).<\/li>\n<\/ul>\n<ul>\n<li>Payback period provides you with an idea of how long it will take to earn back the money you paid for the asset. It is calculated as Cost of Investment \/ Net Cash Flow<\/li>\n<\/ul>\n<ul>\n<li>Net Cash Flow refers to the after-tax net income of a company with any non-cash expenses added back in (like Depreciation).<\/li>\n<\/ul>\n<ul>\n<li>Accounting Rate of Return provides you with an idea of how many cents of after-tax net income you earn of every dollar of your investment. It is calculated as after-tax net income \/ average investment.<\/li>\n<\/ul>\n<ul>\n<li>Average Investment for the rate of return is calculated as the Beginning Book Value (or Cost of investment) + Salvage value (or Ending book value) divided by 2<\/li>\n<\/ul>\n<p>Click <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1430\/2016\/03\/04031457\/capital-budget-key-points.pdf\">capital budget key points<\/a> for a printable copy.<\/p>\n","protected":false},"author":1195,"menu_order":7,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-953","chapter","type-chapter","status-publish","hentry"],"part":24,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/users\/1195"}],"version-history":[{"count":1,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/953\/revisions"}],"predecessor-version":[{"id":955,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/953\/revisions\/955"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/parts\/24"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/953\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/media?parent=953"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapter-type?post=953"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/contributor?post=953"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/license?post=953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}