Active/Collaborative Learning Student Teams Integrating Technology Effectively Women and Minorities Assessment and Evaluation EC2000 Emerging Technology Foundation Coalition Curricula Concept Inventories
Evaluation of Alternatives

Evaluation of Alternatives

  • Introduction
    This module introduces learners to the basic concepts of the "Time Value of Money" It also reviews the need for financial measures in the alternative selection process.
  • Instructional Objectives
    • Students should be able to compare simple project cashflow situations and make a choice between projects based upon B/C ratio, NPV, AE, Cap Value, IRR and ERR.
    • Given a discrete future cashflow (a series of periodic cash payments and/or disbursements over time length N) compute the NPV (net present value) given the interest rate.
    • Be able to draw a cashflow diagram of any given discrete cash stream.
    • Students should be able to determine the NPV of a Bond.
    • Students should be able to determine the Cap Value of a net revenue stream for a revenue generating asset.
    • Students should be able to determine the Payback Period for a revenue generating asset.
  • Student Materials
    Project Comparisons: PPT
  • / PDF
    Interest and NPV: PPT/ PDF
    AE and Capital Value: PPT/ PDF
    BC Ratio IRR: PPT/ PPT
    CE Notes Student Users Guide: PPT/ PDF
  • Instructor guide
    FE Reference Manual (PDF) / Interest Tables (PDF) /
  • Reading Assessment
  • Assignment
  • Case Study
    BC Example XLS


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