Ch 10: Capital Investment Decisions

About This Chapter

Learn how companies and investors asses the monetary desirability of potential investments with our engaging video based lessons. Each lesson features a quiz to help you retain necessary information.

Capital Investment Decisions -- Chapter Summary and Learning Objectives

Businesses and investors use many different techniques to gauge the value of proposed projects or capital investments. Our experienced instructors take you through the process of analyzing the numbers with multifaceted lessons that are designed to increase your comprehension and retention of the material. This chapter covers the following topics:

  • Project cash flow
  • The stand-alone principle
  • Pro forma financial statements
  • Net working capital
  • Depreciation
  • Book value and market value
  • Operating cash flow

Video Objective
Project Cash Flow: Analysis & Examples Learn about the stand-alone principle and relevant cash flows.
Pro Forma Financial Statements & Project Cash Flows Explore net working capital, capital spending, and project cash flows.
The Effects of Depreciation on Cash Flow Study net working capital cash flows and depreciation as well as book value versus market value.
Operating Cash Flow: Definition & Examples Discover the three approaches to the calculation of operating cash flows.

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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