Unit 12
Investment Decisions

In this unit you will extend the applications of compound interest, annuity, and amortization principles you worked with in earlier units to the world of financial investment, both in personal investment decisions and for business.

Objectives

After completing this unit, you should be able to perform the following tasks.

1. Compare investment decisions, and make mathematical comparisons of investment alternatives.
2. Calculate the net present value of an investment.
3. Compare investment projects.
4. Calculate internal rates of return (IRR).