Capital Budgeting Decisions

Capital budgeting decisions is defined as decision of a company to invest the current cash flows in most appropriate and efficient assets with the expectation of getting benefit over a number of years. Capital budgeting decisions has other approaches as pay back period method. Capital budgeting decisions has also 2 types of techniques that are discounted cash flow techniques and non discounted cash flow statements.

Time Value of Money

Time Value of Money: Learning Objectives: Explain the concept of time value of money. Why time value of money concept is important in capital budgeting analysis? Explanation of of the Concept of Time Value of Money Investments commonly involve returns that extend over fairly