a. calculate the yearly cash flows of expansion and replacement capital projects and evaluate how the choice of depreciation method affects those cash flows;

b. explain how inflation affects capital budgeting analysis;

c. evaluate capital projects and determine the optimal capital project in situations of 1) mutually exclusive projects with unequal lives, using either the least common multiple of lives approach or the equivalent annual annuity approach, and 2) capital rationing;

h. calculate and interpret accounting income and economic income in the context of capital budgeting;

i. distinguish among the economic profit, residual income, and claims valuation models for capital budgeting and evaluate a capital project using each.