Appraisal Method: Payback period, Accounting Rate of Return, Net Present Value (NPV), Profitability Index (PI), Internal Rate of Return (IRR)

The appraisal methods enable an organization to evaluate objectively the cost of implementing a project (or investment) and the returns that could be earned from …

Capital budgeting: Concept and Importance

CAPITAL BUDGETING Capital budgeting is the process in which a business determines and evaluates potential large expenses or investments. These expenditures and investments include projects …

Dividend Decision: Dividend Policies

The term dividend refers to that part of profits of a company which is distributed by the company among its shareholders. It is the reward …

Approaches to Capital Budgeting

Different Approaches to Capital Budgeting There are three types of approaches to capital budgeting decisions, depending upon the quality of management These are: Disaster Approach: …

Capital Asset Pricing Model, Assumptions, Importance

Capital Asset Pricing Model, Assumptions, Importance

Role of central Bank in Money Market

Role of RBI in Money Market: Firstly the central bank (RBI) could do this by setting a necessary reserve ratio, which would restrict the ability …

Money Markets: Function

The money market is an organized exchange market where participants can lend and borrow short-term, high-quality debt securities with average maturities of one year or …

A Review of NPV Approach

Net Present Value or NPV is a discounting technique of capital budgeting wherein the profitability of investment is measured through the difference between the cash inflows generated …

Capital Structure and it’s Approach

Capital structure in corporate finance is the mix of various forms of external funds, known as capital, used to finance a business. It consists of …

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