1. Understand what is capital investment appraisal and capital expenditure.
2. Explanation of the following terms with slides demonstration:
Accounting Rate of Return (ARR)
Internal Rate of Return (IRR)
Time value of money
Tax-allowance depreciation (Capital allowances)
Nominal and Real Rate
Annuity and Perpetuity
Net Present Value (NPV)
3. Be able to do capital Investment Questions using the knowledge and demonstration from above.
2. Fully worked Question with answers
3. Three Review Questions