ABSTRACT
At the end of this chapter you should:
Know how programming decisions differ from budgeting decisions.
Be able to use the techniques of payback period, net present value, and internal rate of return to evaluate a program proposal.
Understand the methodology for determining an appropriate discount rate for assessing net present value.
Be able to compute a weighted cost of capital and a weighted return on assets, and incorporate risk into a program analysis.
Understand the issues involved in quantifying the value of a human being.
