Learning Goals in Review

Learning Goal

Guidelines for Review

MyLab Operations Management Resources

1 Explain the time value of money concept.

The section “Time Value of Money,” pp. F-1F-4, covers this concept, including the future value of an investment, present value of an investment, future value factors, and annuities.

OM Explorer Tutors: F1: Present Value of an Investment; F2: Present Value of an Annuity

2 Demonstrate the use of the net present value, internal rate of return, and payback methods of financial analysis.

We explain these three methods in the section “Methods of Financial Analysis,” pp. F-4F-9. Tables F.1 and F.2 make the calculations easy, with software such as OM Explorer or POM for Windows available for more complex ...

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