Capital Budgeting I

Objective

• Determine which projects add value to the firm

Reading

• Chapter 4: A First Encounter with Capital-Budgeting Rules

Net Present Value (NPV)

Internal Rate of Return (IRR)

Modified Internal Rate of Return (MIRR)

Payback Period

Profitability Index

Discounted Payback Period

Optional

Incremental IRR @ Edspira