About this document
Capital Budgeting Decision-Making Guide by Sahil Sherasiya is a document available to read on EtoBox.
Capital budgeting is the process of evaluating potential long-term investments and deciding which projects are worth undertaking. It involves estimating cash flows, assessing risks, and choosing evaluation techniques. The key techniques are net present value (NPV) and internal rate of return (IRR). NPV involves discounting all cash flows to the present using the cost of capital, and a project is worthwhile if NPV is positive. IRR is the discount rate that makes NPV equal to zero.
- Author
- Sahil Sherasiya
- Language
- EN