Capital Budgeting Techniques Ch 13 Net Present Value Profitability Index Problems in Ranking BSA&F3A

Net Present Value (NPV) NPV Acceptance Criterion NPV Strengths and Weaknesses Net Present Value Profile (Graph) Profitability Index (PI) PI Acceptance Criterion PI Strengths and Weaknesses Evaluation Summary of all Methods Other Project Relationships Dependent Projects Mutually Exclusive Projects Potential Problems Under Mutual Exclusivity Ranking of Projects Scale of Investment (Differences): Small and Large Projects Cash Flow Pattern Increasing Cash-Flow, Decreasing Cash-Flow Examine NPV Profiles Fisher’s Rate of Intersection Project Life Differences Long Life and Short Life Project Adjusting Cash Flows if Project is Not Replaced