| 16-1 | Use the net-present-value method and the internal-rate-of-return method to evaluate an investment proposal. |
| 16-2 | Compare the net-present-value and internal-rate-of-return methods, and state the assumptions underlying each method. |
| 16-3 | Use both the total-cost approach and the incremental-cost approach to evaluate an investment proposal. |
| 16-4 | Determine the after-tax cash flows in an investment analysis. |
| 16-5 | Use the Modified Accelerated Cost Recovery System to determine an asset’s depreciation schedule for tax purposes. |
| 16-6 | Evaluate an investment proposal using a discounted-cash-flow analysis, giving full consideration to income-tax issues. |
| 16-7 | Discuss the difficulty of ranking investment proposals, and use the profitability index. |
| 16-8 | Use the payback method and accounting-rate-of-return method to evaluate capital investment projects. |
| 16-9 | Describe the impact of activity-based costing and advanced manufacturing technology on capital-budgeting decisions. |
| 16-10 | Explain the impact of inflation on a capital-budgeting analysis (Appendix B). |
