How many methods are there in capital budgeting? what are
those.
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Answer Posted / aashi
Capital budgeting is the process of managing the long-term capital of a firm in the most profitable way.
There are a number of techniques of capital budgeting. Some of the methods are based on the concept of incremental cash flows from the projects or potential investments. There are some other techniques of capital budgeting that are based on the accounting rules and accounting earnings. The hybrid and simplified techniques of capital budgeting are also used in practice.
Many formal methods are used in capital budgeting, including the techniques such as
 Accounting rate of return
 Net present value
 Profitability index
 Internal rate of return
 Modified internal rate of return
 Equivalent annuity
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