Investment Appraisal

Modified internal rate of return (MIRR) Modified internal rate of return (MIRR) assumes that positive cash flows are reinvested at

Adjusted present value (APV) Adjusted present value (APV), defined as the net present value of a project if financed solely

What is Capital Rationing? Capital rationing is restricted on the amount of new investments or projects undertaken by a company.There

What is Value at risk Value at Risk (VaR) is a measure of the risk of investments. It estimates how

Option Pricing Theory The most used models  are the Black-Scholes model and the binomial model. Both theories on options pricing

Please click the following topics to read details for Net Present Value and Other Investment Criteria as follows: Net Present

Profitability Index (PI) for Mutually Exclusive  Project Mutually exclusive project is different from independent project. For mutually exclusive project, we

PROFITABILITY INDEX (PI) FOR INDEPENDENT PROJECT Company may have some projects to make decision invest or not.  The independent project

PROFITABILITY INDEX (PI) Profitability index (PI) is the present value of an investment’s future cash flows divided by its initial