}How is the future value of a single cash flow computed?

}How is the present value of a series of cash flows computed.

}What is the Net Present Value of an investment?

}What is an EAR, and how is it computed?

}What is a perpetuity? An annuity?

}How do we determine if cash flows are relevant to the capital budgeting decision?

}What are the different methods for computing operating cash flow, and when are they important?

}What is equivalent annual cost, and when should it be used?

}How should cash flows and discount rates be matched when inflation is present?

}Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.

What is the payback period?

What is the discounted payback period?

What is the NPV?

What is the IRR?

Should we accept the project?

}What method should be the primary decision rule?

}When is the IRR rule unreliable?

}How do you find the value of a bond, and why do bond prices change?

}What are bond ratings, and why are they important?

}How does inflation affect interest rates?

}What is the term structure of interest rates?

}What factors determine the required return on bonds?