Capital Budget Decisions

Capital Budget Decisions

This Unit expands the coverage of decision making by focusing on decisions about investments in long-term projects. We also take a brief look at the statement of cash flows to include the classification of the various types of cash inflows and outflows. Objectives:

Define capital budgeting.

Evaluate the acceptability of an investment project using the net present value method.

Compute the simple rate of return for an investment.

Classify cash inflows and outflows as relating to operating, investing, or financing activities