Chapter No. 11 – Capital Budgeting
Contents
• Capital budgets as opposed to revenue budgets
• Different kinds of capital budgets – non-productive assets, improving operating efficiency and capital projects
• Choosing capital projects – Conventional and Discounted Cash Flow techniques
• Payback period, Discounted payback period, Net Present Value, Internal Rate of Return, Profitability Index methods
• Assumptions underlying different methods
• Introduction to IRR vs. NPV
• Incremental cash flow principle for evaluation of replacement decisions
• Numerical exercises on incremental cash flows, NPV, IRR, Discounted payback period and Profitability Index

At the end of the chapter the student will be able to:
• Apply incremental cash flow principle to a replacement decision
• Apply conventional as well as DCF techniques to capital investment decisions
• Determine NPV for a given project and fix the range of rates between which IRR for a given set of......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Business Analysis
Approximate Word Count: 286
Approximate Pages: 2 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Business Analysis, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!