Capital Budgeting II
About the Lecture
The lecture Capital Budgeting II by Edu Pristine is from the course Archiv - Alternative Investments and Corporate Finance. It contains the following chapters:
- Key Evaluation Methodologies - Net Present Value
- Internal Rate of Return (IRR)
- Payback Period (PBP)
- Average Accounting Rate of Return (ARR)
- Profitability Index (PI)
- NPV - Profile
- Comparing and Limitation NPV and IRR
- Capital Budgeting Methods
- Expected Relation NPV, Company Value, Share Price
Author of lecture Capital Budgeting II
Edu Pristine
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Excerpts from the accompanying material
... single capital project: net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI) Prerequisite ...
... its NPV, using a discount rate, k, greater than 0, will be 0. ...
... of capital is $4000. The IRR of project B is 18% while NPV at 10% cost of capital is $6000, the preferred capital budgeting method to be chosen is A. IRR B. NPV C. ...
... In a choice between two mutual exclusive project, NPV is a preferred choice over IRR because: A. Judgment by NPV is better than IRR. B. IRR is not dependable while NPV ...
