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Master the calculation of the payback period for investment projects and its relevance in investment decisions.
Understand the treatment of working capital in investment project evaluations.
Recognize the reinvestment assumption inherent in the IRR and NPV methods.
Analyze the relevance of a project's cash inflows, investment outlays, and operational income in determining its financial viability.

Definitions:

Block Grants

A form of financial aid from a central government to a regional or local authority which can be used at the discretion of the recipient for a wide range of purposes within broad categories.

Federal Government

The national government of a federation, which holds the authority to govern a nation as a whole, distinct from local or state governments.

Funding Availability

The extent to which financial resources are accessible for initiatives, projects, or organizations.

Federal Register

An official journal of the federal government of the United States that publishes government agency rules, proposed rules, and public notices.

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