Capital Budgeting

What is payback period? Explain the acceptance criteria using payback period method.

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Introduction The payback period is a capital budgeting technique used to evaluate the time it takes for an investment to recover its initial cost from its cash inflows. It is a simple and widely used method to assess the risk and liquidity of investment projects. This article defines the payback period, explains how it is […]

What is payback period? Explain the acceptance criteria using payback period method. Read More »

Discuss NPV method for making capital budgeting decisions with suitable examples.

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Introduction The Net Present Value (NPV) method is one of the most widely used techniques for evaluating investment and capital budgeting decisions. It considers the time value of money and provides a clear indication of whether a project will generate value for the firm. This article explains the NPV method, its process, benefits, and includes

Discuss NPV method for making capital budgeting decisions with suitable examples. Read More »

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