Capital Rationing

Capital Rationing

What is Capital Rationing? Capital rationing is a technique of selecting the projects that maximize the firm’s value when the capital infusion is restricted.… Read Article
Payback Period (PBP)

Payback Period (PBP)

The payback period (PBP) is an investment appraisal technique that tells the amount of time taken by the investment to recover the initial investment… Read Article
Internal Rate of Return

Internal Rate of Return (IRR)

Internal Rate of Return (IRR) is a superior technique for evaluating big projects and investment proposals widely used by management of the company, banks,… Read Article
Hurdle Rate

Hurdle Rate

What is Hurdle Rate?Hurdle rate, the opportunity cost of capital, and discounting rate are all same. It is that rate of return that can… Read Article
Capital Budgeting

Capital Budgeting

What is Capital Budgeting?The term Capital Budgeting is a combination of two words ‘capital’ and ‘budgeting.’ The capital here refers to big expenditures that… Read Article
Net Present Value

Net Present Value (NPV)

Net present value or NPV is a very well-known technique for analysis in the arena of finance. Net present value is equal to the… Read Article