1. What are the different capital budgeting methods 2. Which is the best capital budgeting method? 3. Items on a cost accounting statement? Etc..

Question

Accepted Answer

Capital budgeting methods include payback period, net present value, internal rate of return, and profitability index.

Payback period: Measures the time required to recover the initial investment.
Net present value (NPV): Calculates the present value of cash inflows and outflows to determine profitability.
Internal rate of return (IRR): Determines the discount rate at which the NPV is zero.
Profitability index: Compares the present value of cash inflows to the initial investment.
The best capital budgeting method depends on the specific project and its characteristics.

Accepted Answer

When it comes to working capital- soft and hard capital rationing. Then we have EOQ cash management plus Miller Orr model. Finally investment appraisal- NPV is the most homogenous methods cause IRR is a dependant on NPV.

1. What are the different capital budgeting methods 2. Which is the best capital budgeting method? 3. Items on a cost accounting statement? Etc..

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