Ch 14 Capital Budgeting Decision

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Cost/Managerial Accounting
Stephanie  Poole
Mind Map by Stephanie Poole, updated more than 1 year ago
Stephanie  Poole
Created by Stephanie Poole almost 3 years ago
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Ch 14 Capital Budgeting Decision
  1. Capital Budgeting
    1. Typical Capital Budgeting Decisions
      1. Cash Flows versus net operating income
        1. The Time Value of Money
        2. The Payback Method
          1. Evaluation of the payback method
            1. An extended example of payback
              1. Payback and Uneven cash flows
              2. The net present value method
                1. The net present value method illustrated
                  1. Recovery of the original investment
                    1. An extended example of the net present value method
                    2. The internal rate of return method
                      1. The internal rate of return method illustrated
                        1. Comparison of the net present value and internal rate of return methods
                        2. Preference decisions the ranking of investment projects
                          1. Internal rate of return method
                            1. Net present value method
                            2. The simple rate of return method
                              1. Postaudit of investments projects
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