Archive for the ‘Investment Decisions’ Category

Internal Rate Of Return And Mutually Exclusive Projects

Internal Rate Of Return And Mutually Exclusive Projects……. What’s the Concern? While considering the mutually exclusive projects, IRR technique can be misleading. Investment projects are said to be mutually exclusive if only one project could be accepted and others would have to be rejected. NPV and IRR methods for project evaluation leads to conflicting results [...]

Continue reading...

Importance of Capital Budgeting Decisions

This item was filled under [ Capital Budgeting Basics, Investment Decisions ]

Importance of Capital Budgeting Decisions   Capital budgeting is a process used to determine whether a firm’s proposed investments or projects are worth undertaking or not. The process of allocating budget for fixed investment opportunities is crucial because they are generally long lived and not easily reversed once they are made. So we can say [...]

Continue reading...