Please enable JavaScript.
Coggle requires JavaScript to display documents.
CAPITAL BUDGETING 1 (Internal Rate of Return (IRR) (Three proceduresof IRR…
CAPITAL BUDGETING 1
-
Net Present Value ( NPV)
A method of ranking investment proposals using the NPV, which is equal to the present value of the project’s free cash flows discounted at the cost of capital.
-
the single best criterion because it provides a direct measure of value the project adds to shareholder wealth
Payback Period
-
discounted payback.
The length of time required for an investment’s cash flows, discounted at the investment’s cost of capital, to cover its cost.
-
-
-