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 Value, Present 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.