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Methods Of Capital Budgeting And Evaluation

METHODS OF CAPITAL BUDGETING AND EVALUATION

By matching the available resources and projects it can be invested. The funds available are always living funds. There are many considerations taken for investment decision process such as environment and economic conditions.

finance
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The methods of evaluations are classified as follows:

(A) Traditional methods (or Non-discount methods)

(i) Pay-back Period Methods

(ii) Post Pay-back Methods

(iii) Accounts Rate of Return

(B) Modern methods (or Discount methods)

(i) Net Present Value Method

(ii) Internal Rate of Return Method

(iii) Profitability Index Method

Methods Of Capital Budgeting And Evaluation Methods Of Capital Budgeting And Evaluation Reviewed by Blog Editor on Monday, July 03, 2017 Rating: 5

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