Capital

budgeting From Wikipedia, the free encyclopedia Jump to: navigation, search corporeal finance Working gravid bills conversion cycle Return on capital economic Value Added Just-in-time Economic edict bill Discounts and allowances Factoring Capital budgeting Capital investment findings The investment decision The backing decision Sections Managerial finance fiscal chronicle Management accounting Mergers and acquisitions Balance sheet analysis confabulation channel plan Corporate action Societal components Financial market Financial market participants Corporate finance individual(prenominal) finance Public finance Banks and banking Financial regulation Clawback v d e Capital budgeting (or investment appraisal) is the cooking swear out utilise to determine whether an organizations long term investments much(prenominal) as new-sprung(prenominal) machinery, replacement machinery, new plants, new products, and inquir y development projects be worth pursuing. It is budget for major capital, or investment, expenditures.

[1] Many chunk methods are used in capital budgeting, including the techniques such(prenominal) as method of accounting rate of return pass founder value positivism index Internal rate of return Modified inside rate of return analogous annuity These methods use the incremental cash flows from each potency investment, or project. Techniques based on accounting earnings and accounting rules are sometimes used - though economists consider this to be unlawful - such as the accounting rate of return, and r eturn on investment. Simplified and intercr! ossed methods are used as well, such as retribution period and discounted payback period. Contents [hide] 1 last-place endow value 2 Internal rate of return 3 alike annuity method 4 Real options 5 Ranked Projects 6 Funding Sources 7 External links and references [edit] Net present value Main article: Net present value Each potential projects value should be estimated using a...If you want to get a full essay, order it on our website: BestEssayCheap.com

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