Internal Rate of Return (IRR) for Investing Project
Internal Rate of Return (IRR) for Investing Project Internal rate of return (IRR) is the discount rate that makes Net
Continue reading AVERAGE ACCOUNTING RETURN (AAR)
THE AVERAGE ACCOUNTING RETURN (AAR) AAR=Average net income/Average book value Average book value or average investment can be exchanged Project
Continue reading THE DISCOUNTED PAYBACK
THE DISCOUNTED PAYBACK Discounted payback period is the length of time required for an investment’s discounted cash flows to equal
Continue reading THE PAYBACK RULE (PB)
THE PAYBACK RULE (PB) Payback period: the amount of time required for an investment to generate cash flows sufficient to
Continue reading Net Present Value (NPV) for Capital Rationing
Net Present Value (NPV) for Capital Rationing In real situations, company may not have enough capitals to invest all profitable
Continue reading Net Present Value (NPV) for Mutually Exclusive Project
Net Present Value (NPV) for Mutually Exclusive Project Mutually exclusive project is different independent project. For mutually exclusive project, we
Continue reading Net Present Value (NPV) for Independent Project
Net Present Value (NPV) for Independent Project Company may have some projects to make decision invest or not. The independent
Continue reading How to Build Net Present Value (NPV) Profile/Graph
How to Build Net Present Value (NPV) Profile/Graph NPV graph makes an easy way to visualize whether or not an
Continue reading Net Present Value (NPV) for Mixture Project
Net Present Value (NPV) for Mixture Project NPV for mixture project is mixed financing project and investing project, and its
Continue reading Net Present Value (NPV) for Financing Project
Financing Project NPV= Cash receipt – sum of present value of each cash outflow There are two types of sum of
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