3.1 Define the capital budgeting process, explain the administrative steps of the process, and outline the two primary types of capital projects which can be evaluated;
3.2 Describe the major capital budgeting methods that are used to evaluate investment projects;
3.3 Explain the NPV profile, compare and contrast the NPV and IRR methods when evaluating more than one capital project, and describe the multiple-IRR and no-IRR problems that can arise when calculating IRR;
3.4 Outline the formulation of the modified internal rate of return (MIRR) approach to apply as a solution to these problems Explain the structure of the three major cash flows that are associated with traditional investment projects, and the major issues and decisions that need to be considered in relation to cash flow determination
3.5 Outline the how depreciation charges are determined using the modified accelerated cost recovery system (MACRS)
3.6 Calculate and interpret the results produced from each of the following methods when evaluating a single capital project: net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI);
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