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What are the main techniques of capital budgeting? Can you briefly explain each of them?
What are the main techniques of capital budgeting? Can you briefly explain each of them?
Solution
apital budgeting (or investment appraisal) is the process of determining the viability to long-term
investments on purchase or replacement of property plant and equipment, new product line or
other projects.
Capital budgeting consists of various techniques used by managers such as:
All of the above techniques are based on the comparison of cash inflows and outflow of a project
however they are substantially different in their approach.
A brief introduction to the above methods is given below:

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What are the main techniques of capital budgeting Can you briefl.pdf

  • 1. What are the main techniques of capital budgeting? Can you briefly explain each of them? What are the main techniques of capital budgeting? Can you briefly explain each of them? Solution apital budgeting (or investment appraisal) is the process of determining the viability to long-term investments on purchase or replacement of property plant and equipment, new product line or other projects. Capital budgeting consists of various techniques used by managers such as: All of the above techniques are based on the comparison of cash inflows and outflow of a project however they are substantially different in their approach. A brief introduction to the above methods is given below: