1. Define capital investment analysis and describe its relation to the management cycle.
2. State the purpose of the minimum rate of return and identify the methods used to arrive at that rate.
3. Identify the types of projected costs and revenues used to evaluate alternatives for capital investment.
4. Apply the concept of the time value of money.
5. Analyze capital investment proposals using the net present value method.
6. Analyze capital investment proposals using the accounting rate-of-return method and the payback period method.