Capital budgeting is an important topic in corporate finance and is typically taught to business students in the introductory finance course. Textbooks provide at least a chapter on capital budgeting and they discuss a number of decision making tools including Net Present Value (NPV) and Internal Rate of Return (IRR). Our experience in teaching this course over the years is that students struggle with the concepts, especially NPV. We suspect that a few may truly understand the approach, a number more may just memorize the decision rules and too many have little or no understanding. These observations are confirmed by student performance on course examinations, performance in subsequent courses and most recently on assessment instruments given to seniors.