After studying this chapter, you should be able to

1. Explain the strategic role of capital-investment analysis
2. Describe how accountants can add value to the capital-budgeting process
3. Provide a general model for determining relevant cash flows associated with capital-investment projects
4. Apply discounted cash flow (DCF) decision models for capital-budgeting purposes
5. Deal with uncertainty in the capital-budgeting process
6. Discuss and apply other capital-budgeting decision models
7. Identify behavioral issues associated with the capital-budgeting process
8. Understand and use alternative presentation formats for the asset-replacement decision (Appendix A)
9. Identify selected advanced considerations in making capital-investment decisions (Appendix B)