Define simple interest, compound interest, future value, future value of a single amount, future value of an annuity, present value, present value of a single amount, present value of an annuity, discounting and discount rate, principal, maturity value, capital budgeting, and annual net operating cash flows.
Know what factors are used in present value calculations and in future value calculations.
Identify a capital budgeting scenario in which an investment should be accepted.
Know the term that describes discounting a future amount.