2.1 Chapter Two Learning Outcomes
Learning Objectives:
- Compare IRR versus NPV for projects with radically different cash flow series.
- Explore possible solutions when negative interim returns are involved.
- Consider an appropriate method that addresses the issue of Unequal Lives for competing projects.
- Recognize the potential effect of a firm’s Capital Limitations on its investment choices.
- Calculate Spot Rates and possibly utilize them in Capital Budgeting.
- Debate the usefulness of the Market Value Added measure for management performance analysis.