The Basics of Capital Budgeting
The Basics of Capital Budgeting
The Basics of Capital Budgeting
Budgeting
Capital Budget
- is a summary of planned investments in long-
term assets
Capital Budgeting
-the process of planning expenditures on assets with
cash flows that are expected to extend beyond one year
An Overview of Capital Budgeting
NPV
Multiple IRRs
-the situation where a project has two or more IRRs
Modified Internal Rate of Return
Payback Period
-The length of time required for an investment’s net
revenues to cover its cost.