| | - Chapter 10
- Introduction
- Chapter Objectives
- Firm’s Cost of Capital
- How Projects are Classified
- Availability of Funds
- Capital Budgeting Criteria
- Net Present Value
- NPV Decision Rule
- Advantages and Disadvantages of the NPV Method
- NVP Profiles
- IRR
- IRR Using Table IV
- IRR Decision Rule
- Advantages and Disadvantages
- NPV Versus IRR
- NPV v. IRR for Mutually Exclusive Alternatives
- Profitability Index
- Profitability Index Decision Rule
- Payback Period
- Payback Decision Rule
- Advantages and Disadvantages
- Adjusting for Risk
- Risk Analysis
- Illustrative Sensitivity Curves
- Illustration of the Simulation Approach
- Real Options in Capital Projects
- Incorporating Inflation into the Capital Budget
- Real Option Information on the Web
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