1. Describe how net present value is used in the financial decision making process.
2. Explain the effects of sunk costs and opportunity costs in deciding whether to accept a project.
3. Understand how net working capital, depreciation and interest influence the decision to buy or not to buy.
4. Describe how the options to expand or abandon a project are integrated in the capital budgeting process.
5. Review the types of assumptions used in sensitivity and scenario analysis.