Questions with Answers on Capital Budgeting

Questions with Answers on Capital Budgeting

Overview of Capital Budgeting, Techniques of Evaluating Investments – Return on Investment,

Income Based Method-Average Accounting Rate of Return Method, Nominal Cash Flow Based

Method Payback Period, Discounted Cash Flow Based Methods – Discounted Pay Back Period,

Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio, Modified IRR, Risk

Capital Budgeting- Sensitivity Analysis, Capital Budgeting and Corporate Strategy.