The following points highlight the top seven methods used for the evaluation of investment proposals. The methods are:- 1. Urgency Method 2. Pay-Back Period Method 3. Unadjusted Return on Investment Method 4. Net Present Value Method 5. Internal Rate of Return Method 6. Terminal Value Method 7. Benefit-Cost Ratio Method. 1. Urgency Method: In many situations in the life of [...]
In this article we will discuss about:- 1. Meaning of Risk 2. Types of Risk 3. Measurement. Meaning of Risk: By the term risk we mean a situation in which the possible future outcome of a present decision is plural and in which the probabilities and dimensions of their outcomes are known in the form of a frequency distribution. Risk [...]
Economics Notes on Capital Budgeting:- 1. Concept of Capital Budgeting 2. Need for Capital Budgeting 3. Pre-Requisites 4. Process 5. Issues Involved. Concept of Capital Budgeting: Capital budgeting or capital expenditure management is concerned with planning and control of capital expenditure. Budgeting of capital expenditure is an important factor in the management of a business. The term capital budgeting refers [...]