CV

Financial Management & Strategic Management

Ch 3 · Capital Budgeting (Investment Decisions)

5 concept points · 5 formulas · 4 exam-critical points.

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Concept
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Chart Summary
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Formula Sheet
Important Points

🧮 Formula sheet

  1. 1.NPV = Σ [CFt / (1+r)ᵗ] − Initial Investment
  2. 2.IRR: NPV = 0 (solve by trial / interpolation)
  3. 3.PI = PV of inflows / Initial Investment
  4. 4.Payback = Initial Investment / Annual Cash Inflow
  5. 5.Discounted PB = PV inflows = Initial Investment

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