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Excel reportYour nameName of Assignment19th October , 2010| Outline Introduction Capital budgeting techniques Results Conclusion and testimony enumerate of References Introduction It is difficult to choose a make even though it is the best preference among alternatives. In recite to decided to stick to the ending of investiture one should try utilise contrastive regularitys that atomic number 18 lendable and methods greatly determine purposes taken. For instance, when using non-discounting methods of crown budgeting, succession order of money ignored whereas the discounted methods consider the time value of money. Thus, the option may lead to different answers using one method or the other. Most of these firms are facial gesture up with various decisions which require huge enthronements of the companys funds. The decisions the firms heart include replacement decisions, expansions and diversification of operations. Any investment decisio n to be undertaken by a company will yield its growth in the short and long run as well as affect its riskiness. Capital investment assessment techniques have changed oer time because of various factors such as existence of multiple projects that are mutually exclusive, independent projects and realistic investment.

Inflation rates and other complexities have made investment decision making or evaluation techniques change over time (OConnell, 1999). Capital budgeting techniques The three (3) primary methods of Capital Budgeting are the Discounted Methods, Non-Discounted Methods and the Equivalent Annuity Method (Book of Accounting, 2010). The Discounted Methods of Capital Budgeting are the peel Present Value method, Profit! ability Index, Internal Rate of pall and Present Value Payback Method. The Pros of using the Discounted Methods are punctuate the cash flows, recognizing the time value of money, assumes the discount rate as reinvestment rate and computing the real project return. The Cons of using the Discounted Methods are...If you need to get a full essay, order it on our website: OrderEssay.net

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