Financial & Managerial Accounting, 2002 Edition
Belverd E. Needles, Jr., DePaul University Marian Powers, Northwestern University Susan Crosson, Santa Fe Community College
Chapter Summaries
Chapter 26: Capital Investment Analysis
Chapter 26 provides a discussion of capital investment decision analysis. It links capital investments to the management cycle. The purpose of minimum rate of return is covered as well as the identification of the methods to arrive at this rate. The chapter also includes a discussion of the methods to evaluate investment proposals, using the net present value accounting rate of return and payback period methods.