Capital budgeting techniques

CRITERIA

NON-PERFORMANCE

BASIC

PROFICIENT

DISTINGUISHED

Explain the net present value (NVP) method for determining a capital budgeting project's desirability. 

Does not explain the NPV method for determining the desirability of a capital budgeting project.

Explains the NPV method for determining the desirability of a capital budgeting project but omits key elements.

Explains the NPV method for determining the desirability of a capital budgeting project.

Analyzes the NPV method for determining the desirability of a capital budgeting project and connects the analysis to relevant real-world examples. 

Identify the benchmark when using net present value (NVP). 

Does not identify the benchmark when using NPV. 

Identifies the benchmark when using NPV but omits key elements.

Identifies the benchmark when using NPV. 

Analyzes the benchmark when using NPV and connects the analysis to relevant real-world examples. 

Explain the payback period statistic.

Does not explain the payback period statistic.

Explains the payback period statistic but omits key elements.

Explains the payback period statistic.

Analyzes the payback period statistic and connects the analysis to relevant real-world examples. 

Identify the payback period statistic acceptance benchmark.

Does not identify the payback period acceptance benchmark.

Identifies the payback period acceptance benchmark but omits key elements.

Identifies the payback period acceptance benchmark.

Analyzes the payback period acceptance benchmark and connects the analysis to relevant real-world examples. 

Describe the internal rate of return (IRR) method for determining the desirability of a capital budgeting project. 

Does not describe the IRR method for determining the desirability of a capital budgeting project. 

Describes the IRR method for determining the desirability of a capital budgeting project but omits key elements.

Describes the IRR method for determining the desirability of a capital budgeting project. 

Analyzes the IRR method for determining the desirability of a capital budgeting project and connects the analysis to relevant real-world examples. 

Identify the internal rate of return (IRR) acceptance benchmark of a capital budgeting project. 

Does not identify the IRR acceptance benchmark of a capital budgeting project. 

Identifies the IRR acceptance benchmark of a capital budgeting project but omits key elements.

Identifies the IRR acceptance benchmark of a capital budgeting project. 

Analyzes the IRR acceptance benchmark of a capital budgeting project and connects the analysis to relevant real-world examples. 

Describe the modified internal rate of return (MIRR) method for determining the desirability of a capital budgeting project. 

Does not describe the MIRR method for determining the desirability of a capital budgeting project. 

Describes the MIRR method for determining the desirability of a capital budgeting project but omits key elements.

Describes the MIRR method for determining the desirability of a capital budgeting project.

Analyzes the MIRR method for determining the desirability of a capital budgeting project and connects the analysis to relevant real-world situations. 

Identify the strengths and weaknesses of modified internal rate of return (MIRR). 

Does not identify the strengths and weaknesses of MIRR. 

Identifies the strengths and weaknesses of MIRR but omits key elements.

Identifies the strengths and weaknesses of MIRR. 

Analyzes the strengths and weaknesses of MIRR and connects the analysis to relevant real-world situations. 

Calculate the net present value (NVP) for a project. 

Does not calculate the NPV for a project. 

Calculates the NPV for a project using inaccurate or incomplete information. 

Calculates the NPV for a project. 

Calculates the NPV for a project and explains the calculation. 

Calculate the internal rate or return (IRR) and modified rate or return (MIRR) for a project. 

Does not calculate the IRR and MIRR for a project. 

Calculates the IRR and MIRR for a project using inaccurate or incomplete information. 

Calculates the IRR and MIRR for a project. 

Calculates the IRR and MIRR for a project and explains the calculation. 

Explain whether a project should be accepted or rejected, based on the calculated IRR and MIRR. 

Does not explain whether a project should be accepted or rejected, based on the calculated IRR and MIRR. 

Explains whether a project should be accepted or rejected, based on the calculated IRR and MIRR, but omits key elements.

Explains whether a project should be accepted or rejected, based on the calculated IRR and MIRR. 

Analyzes whether a project should be accepted or rejected, based on the calculated IRR and MIRR, and connects analysis to relevant real-world situations.