Overseas projects in general, and global projects in particular throw up unique issues in coordination, management and control, arising from behavioural, cultural, regulatory, and political differences. There is the added problem of teams working in different time zones and the project's 'public visibility' especially if it was given the green signal by the host country's government in the face of [...]
There are two broad evaluation methods for a capital budgeting proposal: i. Non-Discounted Cash Flow Methods: These are the traditional methods and include payback period and the accounting rate of return (ARR). Their biggest disadvantage is that they ignore the time value of money. The payback method is skewed towards selection of projects with the shortest payback period; it ignores [...]
There are several methods which are used to evaluate capital budgeting decisions. The techniques are: 1. Payback Period 2. Average Rate of Return 3. Net Present Value Method 4. Profitability Index 5. Discounted Payback Period 6. Internal Rate of Return 7. Modified Internal Rate of Return 8. Equivalent Annualized Cost/Benefit Method. 1. Payback Period: It refers to that period within [...]