How many methods are there in capital budgeting? what are
those.
Answer Posted / prasanna11149@yahoo.co.in
Capital budgeting (or investment appraisal) is the planning
process used to determine whether firm's long term
investments such as new machinery, replacement machinery,
new plants, new products, and research and development
projects are worth pursuing.
Many formal methods are used in capital budgeting,
including the techniques such as
Net present value
Profitability index
Internal rate of return
Modified Internal Rate of Return, and
Equivalent annuity.
These methods use the incremental cash flows from each
potential investment, or project. Techniques based on
accounting earnings and accounting rules are sometimes
used - though economists consider this to be improper -
such as the accounting rate of return, and "return on
investment." Simplified and hybrid methods are used as
well, such as payback period and discounted payback period
| Is This Answer Correct ? | 29 Yes | 4 No |
Post New Answer View All Answers
What is meant by consignment
Hi, Please post in here the Aptitude Test Questions given in companies like Thomson, Reuters, GMS, JP Morgan, Northern Trust Bank etc.
What are write off entries to be passed say if im having payable of Rs. 400 standing in the balance sheet and I want to write it off...
A company acquires new taxi fleets on 1April 2006 with intention to provide services during the World Cup period and thereafter dispose the taxis .The World Cup runs for three months to 30 June 2006.The company's year end is 30 June 2006.how do you account for taxis at initial recognition .
what are Equity shares,Preference shares,Bonus shares,Bond,Debentures,Dividend?
What do we mean by the term "Securities" when we say that "Govt injecting/sucking liquidity in/out of the system by buying/selling securities?
You configured new assets accounting for your company code with three depreciation areas that post in real time. When posting an external acquisition. How many documents are created?( any 1 answer) 2 3 4 6
EXPAND___________NBW
KINDLY PROVIDE ME RBI OFFICER SCALE B QUESTION PAPER (PREVIOUS)
What is the content of purchase order? n content of voucher? what is the main use of voucher.
DEfine SAP
please give the sbi bank clerk exam paper model in last five years?
Short Answer on ___________Cash Profit
Pls Explain Accounting Standered 1,3,11,29
How to dived the persons AOP, AJP, BODY OF INDIVIDUALS,HUF,COMPANY-NON RESIDENT, COMPANY RESIDENT LOCLA AUTHORITY,PARTNERSHIP FIRM(meaning)