Investment Decisions and Capital Expenditure
First we would look at the common techniques used to make and prioritise investment decisions, including return on investment and payback. We would then look at the shortcomings of these methods.
Next the concept of time value of money would be introduced leading to an exploration of discounted cashflow, net present value and the internal rate of return.
Finally we would consider some other issues around this topic; sensitivity analysis; cost of money; risk- its measurement and impact.