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Investment Decisions

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 …

Payback Period (PBP)

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 …

Hurdle Rate

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 …