## Portfolio Risk Management

Portfolio Risk and Return - Managing Portfolio in the Light of Returns and Constraints The objectives associated with the returns are divided in to several different needs a few of…

## Portfolio Risk and Reward Measurement

Portfolio Risk and Reward Investment is always associated with two most important things namely, risks and returns and measuring both of these is always a crucial part of every investment.…

## Time Value of Money

What is Time Value of Money? Time Value of Money – A Crucial Concept Time value of money is the name which we all hear every now and then in…

## IRR Decision Rule | Capital Budgeting Techniques

IRR Decision Rule IRR is one among a number of capital budgeting techniques which is most commonly used by the investors for evaluating their investment decisions. What is IRR? IRR…

## NPV Decision Rule | Capital Budgeting Techniques

NPV Decision Rules - Capital Budgeting Techniques Net Present Value is defined as the present value of all expected cash flows generated by the project minus present value of the…

## Project Analysis | Accounting Rate of Return

Project Analysis – Capital Budgeting Techniques Nile’s Manufacturing is considering buying automated machinery that costs $250,000. Working capital requirement is $25,000 and they are expecting Annual cash savings of…

## Payback Period and ARR Example- Project Analysis

Project Analysis - Capital Budgeting Techniques Solved example of Payback Period and ARR Steve has been appointed as finance director of a company. His only aim is to gain some experience…

## Project Analysis | Capital Budgeting Techniques

Project Analysis - Capital Budgeting Techniques Net Present Value Example We are considering following project for investment purpose. Initial cost of the project: $800,000 Project Life:…

## Accounting Rate of Return (ARR) | Capital Budgeting Techniques

Accounting Rate of Return - Capital Budgeting Techniques Accounting rate of return is the project evaluation technique which differs from other capital budgeting techniques because the focus of this technique is…

## 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…

## Independent and Mutually Exclusive Projects

Independent and Mutually Exclusive Projects Understanding of classification of capital budgeting projects plays a crucial role while analyzing viability of projects. What is mutually Independent Projects? A Project whose cash flows…

## 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…

## Profitability Index

Profitability Index Profitability index (PI) is the ratio of investment to pay off a suggested project. It is a useful capital budgeting technique for grading projects because it measures the…

## Capital Budgeting Process

Capital Budgeting Process Capital Budgeting Process is a process of identifying and evaluating projects where businesses are expected to receive cash flows over a period longer than one year. Any…

## Net Present Value (NPV) Formula and Example

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