Completion requirements
Read this section, which discusses capital budgeting and decision-making, net present values, annuity tables, and internal rate of return. Large corporations use capital budgeting techniques when investing in real estate projects or large equipment projects.
Appendix
Present Value Tables
Figure 8.9 Present Value of $1 Received at the End of n Periods
Note: \(Factor = \dfrac{a}{(1+r)^n}\)
Figure 8.10 Present Value of a $1 Annuity Received at the End of Each Period for n Periods
Note: \(Factor = \dfrac{1-(1+r)^{-n}}{r}\)