Reference no: EM132546784

Point 1: The 3 different capital investment techniques are one, net present value which is about the flow of money in and out for a set project. The second investment technique is internal rate or return and that is how much is the project earning during the actual project. The last investment technique is the payback method and the is mostly set in time where the project is breaking even and then working toward the profit aspect of the project.

Point 2: The advantages of the net present are you are probably looking closely at what is happening during the said project. This means that looking at every expense and comparing it to what was budgeted and making sure not to sway in the red too much. Another advantage to the payback method is that knowing where the break even point means that as a manager you can then make cuts to stay on budget or find ways to speed up the project because of knowing that from a said point the project is all profit.

Question 1: What are some additional advantages and disadvantages of net present value and other examples