## Discounted Cash Flows | Capital Budgeting Techniques

Discounted Cash Flows - Capital Budgeting Techniques We have discussed earlier that accounting rate of return & payback period ignore time value of money and cash flow trends. Means cash…

## How to Calculate NPV | Capital Budgeting Techniques

How to Calculate Net Present Value For example we are planning of starting a business of producing and selling ;We can estimate the initial cost with reasonable accuracy because we know…

## How to Calculate Discounted Payback Period | Capital Budgeting Techniques

How to Calculate Discounted Payback Period For calculating discounted payback period (DPP), we will calculate the present value (PV) of each cash flow (CF) starting from the first year as…

## How to Calculate Payback Period | Capital Budgeting Techniques

How to Calculate Payback Period-Capital Budgeting Techniques Payback period is calculated by capital invested in the project by the net annual cash flow. Average of net annual cash flows may…

## Discounted Payback Period | Capital Budgeting Techniques

Discounted Payback Period One of the limitations in using payback period is that it does not take into account the time value of money. Thus, future cash inflows are not…

## Internal Rate of Return | Capital Budgeting Techniques

Internal Rate of Return Internal Rate of Return is another important technique used in Capital Budgeting Analysis to access the viability of an investment proposal. This is considered to be…

## Payback Period | Capital Budgeting Techniques

Payback Period Payback period is the first formal and basic capital budgeting technique used to assess the viability of the project. It is defined as the time period required for the…

## Net Present Value (NPV) Formula | Example

How to Calculate Net Present Value using Excel: The calculation of net present value is useful when a business has to identify a viable investment opportunity. There are many ways to…