Saturday, October 18, 2014

Different Methods of Capital Budgeting

When there are various Investment proposals, Capital budgeting helps us to find out the BEST Investment proposal using various techniques. They are,

1. Payback period.
2. Discounting payback period.
3.Accounting Rate of Return (ARR).
4.Net present Value (NPV).
5.Internal Rate of Return (IRR).

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