What difficulties might come up in actual applications

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What difficulties might come up in actual applications of the various criteria we discussed in this unit? Which criterion will be easiest to implement in actual applications? The most difficult? Provide elaborate examples to support your reasoning.

Net Present value. The Payback rule. The discounted payback. The average accounting return. The Internal Rate of Return. The profitability Index. The practice of capital budgeting. Project cash flows. Incremental cash flows. Pro forma financial statements and project cash flows. Alternative definitions of operating cash flows. Some special cases of discounted cash flow analysis.

 

Reference no: EM13273191

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