# Ch 14: Capital Budgeting

In this chapter, you will find engaging video lessons that teach you about capital budgeting. When you are finished with a lesson, try out the quizzes to evaluate your understanding of the material.

## Capital Budgeting - Chapter Summary and Learning Objectives

Capital budgeting allows managers to assess projects in order to approve or deny them. Evaluating the techniques associated with capital budgeting will allow managers to make informed decisions. In this chapter, instructors will explain these techniques and focus on examples of how they are used. Engaging video lessons will explain the methods of capital budgeting. Lesson quizzes are available for you to test yourself on the subject matter. In this chapter, analyze material like:

• What capital budgeting is
• The cash payback technique and its uses
• How to evaluate a budget with the net present value method
• The intangible benefits method
• Managing the profitability index method
• Estimating the internal rate of return
• Ways to calculate the annual rate of return

Video Objective
What Is Capital Budgeting? - Techniques, Analysis & Examples Formulate a capital expenditure budget and understand its function.
Cash Payback Technique: Definition & Formula Assess the cash payback technique and use the formula for computing the cash payback period.
Evaluating a Budget Using the Net Present Value Method Explain the net present value method and learn to use it to evaluate budgets.
Net Present Value: Evaluating Estimates Devise a way to evaluate estimates.
Intangible Benefits Method: Definition & Challenges Analyze the challenges with intangible benefits in capital budgeting.
Profitability Index Method: Definition & Calculations Evaluate the profitability index in capital budgeting and how to figure it.
How to Evaluate a Budget Using the Post-Audit Method Analyze how the post-audit method is performed for capital budgeting.
Internal Rate of Return Method: Definition & Calculation Focus on how internal rate of return is calculated.
Using the Annual Rate of Return Method to Evaluate a Budget Judge the annual rate of return method for evaluating the capital budget.

8 Lessons in Chapter 14: Capital Budgeting
Test your knowledge with a 30-question chapter practice test
Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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