The Investment Decision: basic concepts in finance (time value of money, compounding and future values, discounting and present values), fundamentals of accounting (the balance sheet and the income statement), accounting rates of return, from earnings to cash flows, cash-flow based investment rules (payback period, net present value, profitability index, internal rate of return, incremental irr, nominal versus real analysis, equivalent annuities when comparing projects with different lives), sensitivity and scenario analysis.

Examples.