O'Reilly logo

Finance and Accounting for NonFinancial Managers, 3rd Edition by Eliot H. Sherman

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

 7 

Capital InvestmentDecision Making

image

Learning Objectives

By the end of this chapter, you should be able to:

•  Apply time value of money tools to capital investment projects.

•  Calculate the weighted average cost of capital.

•  Explain why it is necessary to justify an investment.

OVERVIEW

This chapter provides a bridge between the discussion of risk and return (Chapter 6) and managing long-term assets (Chapter 8). Operating managers who want their company to invest in a long-term asset that will help them achieve operating performance objectives are generally asked to “justify” the investment. In other words, the managers must demonstrate ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required