O'Reilly logo

A Manager's Guide to Financial Analysis by Eliot H. Sherman

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

5

Evaluating Capital Investment Proposals

image

Learning Objectives

By the end of this chapter, you should be able to:

•  List the elements in the capital budgeting process and the key issues to consider.

•  Define the cost of capital or discount rate.

•  Determine the cash flow from an investment.

•  Describe the steps for assessing and measuring risk when making investment decisions.

•  Evaluate capital investment proposals using at least six techniques.

•  Describe the strengths and weaknesses of payback.

•  Explain the role of the post-audit in the capital budgeting process.

Collaborating to Improve Investment Strategies

“As the next meeting began, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required