Evaluating Capital Budgeting Decisions: 8 Techniques | Financial Management

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 [...]