capital budgeting techniques

In Capital budgeting techniques,capital budgeting is that which is also entitled investment decision, is the preparation procedure second-handed to conclude whether an organization’s long term investments, major capital, or expenditures are worth pursuing.Capital budgeting methods contains Payback technique(The payback measures the distance end to end of time it obtains a company to make progress in cash its initial investment.) and Net present value(Net Present Value is distinct as the present value of all predictable cash flows produced by the project negative present value of the cost of the project.).

Time Value of Money

Time Value of Money: Learning Objectives: Explain the concept of time value of money. Why time value of money concept is important in capital budgeting analysis? Explanation of of the Concept of Time Value of Money Investments commonly involve returns that extend over fairly