X. Capital Budgeting

Student Resources

Part One: Email Application Activities

Inquire where you work.   Prepare a memo for me outlining how  capital investment decisions made?  What techniques are used?  What suggestions would you make for improvement, if any?

Part Two: Chapter Assignment and Homework Problems

Read chapter eight in Jones, Werner, Terrell, and Terrell.  Home work: 8-18, 8-23, 8-25, 8-27, 8-31, 8-35, 8-38, 8-40, 8-43, 8-48, 8-55, 8-57,  

Part Three: Spreadsheet Application Activities

8-52

 

I. Capital budgeting       

    A. The capital budgeting process

    B. The cost of capital

II. Issues in capital budgeting

    A. John K. Shank; Vijay Govindarajan, Strategic cost analysis of technological investments,  Sloan Management Review, Fall 1992 v34 n1 p39(13).