Module 11 Capital Budgeting Decisions

29/11/2024 23 min Temporada 1 Episodio 11

Listen "Module 11 Capital Budgeting Decisions"

Episode Synopsis

This episode presents various methods for evaluating capital investment projects. It explains non-time value methods, such as the payback method and accounting rate of return, alongside time value methods, including net present value and internal rate of return. We illustrate these methods with numerous examples and compare their strengths and weaknesses, guiding readers through the decision-making process for selecting the most profitable investment opportunities. Finally, we discuss ethical considerations in capital budgeting decisions.