Importance of capital budgeting decision, finance, Other Engineering

Importance of capital budgeting decision, finance, Other Engineering

Assignment Help:

The study is conducted to know the importance of capital budgeting decision and the techniques to evaluate the investment projects. There are a variety of discounted and non-discounted techniques of capital budgeting.
Discounted techniques considers present value factor, while non-discounted methods do not consider the time value of money.
After analyzing the pros and cons of all the techniques, it is concluded that the best method is net present value method and Internal Rate of return method. Pa back period is also widely used as it is simple and easy to understand and calculate. The literature review and past researches conducted also support this view.
Hence it is highly recommended to use NPV and IRR method in making the capital budgeting decisions. Also for small firms payback period method can be used for evaluation of replacement activity and for small expansion purposes.

Related Discussions:- Importance of capital budgeting decision, finance

Assignment help, need help with energy engineering assignment,environment t...

need help with energy engineering assignment,environment technology assignment,mechanical assignment

Optimization, Wild west produces two types of cowboy hats. Type 1 hat requi...

Wild west produces two types of cowboy hats. Type 1 hat requires twice as much labor time as a type 2. If all the available labor time is dedicated to type 2 alone, the company can

Compression properties of composites , The IITRI test is widely used to mea...

The IITRI test is widely used to measure the compressive properties of composites. The specimen is rectangular with aluminium end tabs bonded to protect against the gripping actio

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

Electro slag welding process, Q. Describe the electro slag welding process....

Q. Describe the electro slag welding process. OR Describe electro slag welding process. What are the speci

Heat conduction problem in hollow cylinder, Heat conduction problem in holl...

Heat conduction problem in hollow cylinder There are a lot of researches for calculating the temperature field in various shapes using different boundary and initial cond

Combustion process, Combustion process: Air from the engine compressor ...

Combustion process: Air from the engine compressor enters the combustion chamber at a velocity up to 500 feet per second, but because at this velocity the air speed is far too

Linear state space equations, Linear state space equations Linear state...

Linear state space equations Linear state space equations consist of a (difierential) state equation? x = Ax + Bu and an (algebraic) output equation y = Cx + Du whe

Water supply design, what is the use of HEC-HMS modelling in water supply s...

what is the use of HEC-HMS modelling in water supply system ,how we use it? what is the necessary input for the software?

Explain the omni-directional and the directional antennas, Question: a)...

Question: a) An antenna is an electrical conductor or system of conductors that sends and receives radio signals. Explain the omni-directional and the directional antennas.

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd