In order to analyze whether the investments projects are worthwhile from financial point of view, we use various investment appraisal techniques and Payback period is one of them. PBP actually calculates how many periods, the projects takes to repay its…
IRR is the discount rate at which the NPV (net present value) of the project under consideration becomes zero. Another definition is the rate at which project cash flows are recovered. It is clearly no profit no loss situation or…
One of the most popular tool for evaluating the feasibility of the capital budgeting is the Net Present Value (NPV) method. As the project under consideration gives rise to cash flows in more than 01 years, so in such a…
This is the most important topic in financial management. By Capital budgeting we mean the long term decisions for investment. Should we invest money into the long term project or not, this all decision making, analysis and conclusion is well…
Reasons to Expand into Global Markets The important decision of financial management is the investment decision. Entity may do business outside of the national border. It all depends upon how the management views the option to expand in international markets.…
Financial management is the important topic of the business. It is the backbone of any success in the business. This is the way business plans for the growth, acquire financing to apply the plan and distribute the profit earned to…