Tag Archives | Capital Budgeting

Capital Rationing

Capital rationing refers to a condition where a firm is not in a position to invest in all profitable projects due to the constraints on accessibility of funds. It is a known fact that the financial resources are always inadequate and the demand for them far exceeds their availability. It is for this reason that the firm cannot take up [...]

By |2023-01-30T18:29:42+05:30March 5, 2022|Capital Budgeting|Comments Off on Capital Rationing

Techniques of Capital Budgeting

Everything you need to know about the techniques of capital budgeting. Some of the techniques can be grouped in the two categories as mentioned below: 1. Non-Discounted Cash Flow Techniques:  (a) Accounting Rate of Return Method  (b) Payback Period Method; 2. Discounted Cash Flow Techniques:  (a) Net Present Value Method  (b) Internal Rate of Return Method  (c) Profitability Index Method. [...]

By |2023-01-13T17:53:56+05:30February 4, 2019|Techniques of Capital Budgeting|Comments Off on Techniques of Capital Budgeting

Process of Capital Budgeting

Everything you need to know about the process of capital budgeting. Capital budgeting is a process by which companies assess how to fund operations and new ventures through movement and management of assets. This involves a series of actions or steps taken to achieve best possible returns. This process involves the selection of those new investment proposals presented to a [...]

By |2023-01-30T18:29:24+05:30February 4, 2019|Capital Budgeting|Comments Off on Process of Capital Budgeting
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