what is a capital budgeting

Answer Posted / lokesh bhamu

capital budgeting is a exercise done by firm for selection of project on the basis of present value of expected cash inflow in future if they opt that particular project. various type of techniques like payback period, NPV and IRR are used depending upon decision making process and level. IRR,NPV and profitability index method are exercised most of the time and they are quite similar to each other.

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