## Capital Rationing

Capital rationing is a technique of selecting the projects that maximize the firm’s value when the capital infusion is restricted. Two types of capital rationing are soft and hard …

Capital rationing is a technique of selecting the projects that maximize the firm’s value when the capital infusion is restricted. Two types of capital rationing are soft and hard …

Profitability Index (PI) is a capital budgeting technique to evaluate the investment projects for their viability or profitability. Discounted cash flow technique is used in arriving at the profitability …

The payback period is an investment appraisal technique which tells the amount of time taken by the investment to recover the initial investment or principal. The calculation of the …

Modified internal rate of return is a solution to the shortcomings of internal rate of return as a project evaluation technique. There are two major disadvantages of IRR. One …

The advantages and disadvantages of the internal rate of return are important to understand before applying this technique to specific projects. There must be a proper analysis conducted and …

IRR is a prominent technique for evaluation of big projects and investment proposals widely used by management of the company, banks, financial institution etc for their various purposes. The …

Hurdle rate, the opportunity cost of capital and discounting rate are all same. It is that rate of return which can be earned from next best alternative investment opportunity …

What is Net Present Value (NPV) and Risk? Net present value (NPV) and the risk have a strong relationship with each other. With an inappropriate assessment of risk, one …

Capital budgeting is a technique for evaluating big investment projects. Net Present Value (NPV), Benefit to Cost Ratio, Internal Rate of Return (IRR), Payback Period and Accounting Rate of …

Net present value or NPV is a very prominent technique for analysis in the arena of finance. Net present value is equal to the present value of all the …

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