Abbott Associates
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FCC 534 – Capital Budgets

This unit will cover projects, capital, and capital budgets. Many projects require capital funding. This unit will explain the time aspect on money, project acceptance decision making rules, how to track the actual results plus more. By the end of the class, you will be able to compute your return on investment for all purchases, projects, and improvement initiatives. The topics covered in this unit are:

  • Future ValuePresent Value, Payment annuity
  • Capital Project Planning
  • Basic Project Decision
  • Return on investment
  • Payback period
  • Advanced project acceptance rules
  • Net Present Value
  • Internal Rate of Return
  • Capital budget result tracking 


Capital Budget Planning


Future Value


Present Value


Present Value and Future Value Example on computer


Annuity

Annuities example on computer



Practice Problem 1

This problem is optional and intended to help you understand the material.. It should be done after you have completed the video lecture Annuities example on computer. Take care to read each problem below carefully.

The problems are in the word file and the data is in the spreadsheet.

Insert media

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Capital Budget Decision Rules


Net Present Value


Net Present Value on the computer


Internal Rate of Return


Internal rate of return example on computer


Capital Budget Example


Tracking and control


Practice Problem 2

This homework problem is optional and intended to help you understand the material. It should be done after you have completed the video lecture Tracking and control.  Take care to read each problem below carefully. 

The problems are in the word file and the data is in the spreadsheet.