Capital Investment Decisions
Activity Context
This discussion helps you develop the skills to master the following course competencies:
o Apply the theories, models, and practices of finance to the financial management of the firm.
Activity Instruction
Compare and contrast up to three concepts associated with making capital investment decisions such as cash flows, sunk costs, opportunity costs, or others. Discuss why your selected concepts are important for you as an investor to factor into the decision-making process.
Support your post as appropriate with the theories presented in this week's required reading.
Required Readings
Use your Corporate Finance: Core Principles and Applications textbook to read the following:
o Chapter 7, "Net Present Value and Other Investment Rules."
o Chapter 8, "Making Capital Investment Decisions."
o Chapter 9, "Risk Analysis, Real Options, and Capital Budgeting."
Required Textbooks/eBooks
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill.
Use the University Library to read: see attachment.
o Keršyte?, A. (2011). Capital budgeting process: theoretical aspects. Economics & Management, 16, 1130-1134.
o Turner, J. A. (2016). Net operating working capital, capital budgeting, and cash budgets: A teaching example. American Journal of Business Education, 9(1), 15-21.