NPV vs IRR vs PB vs PI vs ARR
Every firm has to make several investment decisions in its life. Investment decisions are the firm’s decision to invest its funds, most efficiently, into… Read Article
Techniques of Capital Budgeting
Initial Outlay – Meaning, Importance And Calculation
What is Initial Outlay?Before one starts a business, it is important to know the amount that one will be investing in it. This initial… Read Article
Capital Budgeting Techniques With an Example
Capital Budgeting TechniquesCapital budgeting is a process that helps in planning the investment projects of an organization in the long run. Let’s understand all… Read Article
Importance of Capital Budgeting
Capital Budgeting MeaningCapital budgeting is a process that helps in planning the investment projects of an organization in the long run. It takes all… Read Article
Investment Appraisal Techniques
Investment appraisal techniques are also known as capital budgeting techniques. Capital budgeting helps an entity decide whether or not a project would offer the… Read Article
What Is CAGR And How It’s Useful?
CAGR is one term that almost all of us come across when we consider making any investment. But many don’t have a clear idea… Read Article
Advantages and Disadvantages of Payback Period
Business managers often face scenarios when they have to choose between projects. Such business decisions are very crucial as resources are limited. Thus, managers… Read Article
How can a Capital Budgeting Decision Go Wrong?
What is a Capital Budgeting Decision?Capital budgeting decision is the process by which companies make decisions pertaining to fund allocation for huge investment decisions.… Read Article
Advantages and Disadvantages of Profitability Index
The profitability index (PI) is a capital budgeting tool that helps decide whether to accept or reject a project. The formula of PI is… Read Article
Advantages and Disadvantages of NPV
There are various advantages and disadvantages of NPV. Let’s have a look at each to understand the peculiarities of NPV in depth. These pros… Read Article
Discounted Payback Period
Definition of Discounted Payback PeriodThe discounted payback period is a capital budgeting method used to calculate the time period a project will take to… Read Article