Strategic Investment Decisions
1.How are strategic investment decisions made?
2 What cash flows are relevant for strategic investment decisions?
3 How is net present value (NPV) analysis performed and interpreted?
4 What business risks and limitations affect NPV analysis?
5 What alternative methods (IRR, payback, and accrual accounting rate of return) are used for strategic investment
decisions?
6 What additional issues should be considered for strategic investment decisions?
7 How do income taxes affect strategic investment decision cash flows?
8 How are the real and nominal methods used to address inflation in an NPV analysis?
