what is capital budgeting and techniques of capital
budgeting.

Answer Posted / shashank

Capital budgeting relates to the below mentioned points:

1 it means to take decision for investment in fixed assets.

2 it means to take decision in regard with money investment
in long term projects.

3 evaluation of the expenditure on the basis of net
outlays....

following are the techniques of capital budgeting...

A- NPV
B- PROFITABILITY INDEX
C- INTERNAL RATE OF RETURN
D- ARR(TRADITIONAL TECHNIQUE)


{IF THERE IS CAPITAL RATIONING THEN WE SHOULD SELECT THE
PROJECTS ON THE BASIS OF PI.
AND IF THERE IS NO SUCH PROBLEM THEN WE SHOULD CONSIDER THE
PROJECT ON THE BASIS OF NPV...}

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