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What is Time Value of Money in Capital Budgeting about?

The document discusses capital budgeting, which involves making long-term decisions about investing capital to purchase assets. It defines capital and budgeting, and explains the importance of capital budgeting. It introduces key concepts like the time value of money and discounting cash flows. Common capital budgeting techniques are also presented, including non-discounted methods like payback period and unadjusted rate of return that do not account for the time value of money, as well as discounted method

Author

SUNMIN PARK

Language

EN