Question No 4(with answer) on Basic Capital Investment Decisions or Investment Appraisal Techniques

Below is a simple question and answer to illustrate on the basic capital investment appraisal technique re:NPV,cost of capital and treatment of inflation:-

Question No 4 on basic capital investment decision or investment appraisal techniques

Part answer to Question no 4

Complete answer to Question 4

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Question No 3(with answer) on Basic Capital Investment Decisions or Investment Appraisal Techniques

Below is a simple question with answer to illustrate capital investment appraisal technique namely the  accounting rate of return,payback method methods:-

Question No 3 on Capital Investment Decisions or Appraisal Techniques

Part answer to question no 3

Complete answer to Question no. 3

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Basic Question No 2 (with answer) On Capital Investment Decisions or Appraisal Techniques

Below is a simple question and answer to illustrate the capital investment appraisal technique namely the payback and net present value method:

Basic Question No 2 with Answer on Capital Investment Appraisal techniques

Answer to basic question no.2 on capital investment appraisal techniques

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Capital Investment Decisions Or Appraisal Technique Question 1 (with answer)

Below is a simple question and answer on net present value and pay back method to illustrate capital investment decision or appraisal techniques:

Basic Question No 1 (with answer) on Capital Investment Decision or appraisal techniques

 

Answer to Question 1 On Capital Investment Decisions or Appraisal Techniques

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Net Present Value As The Most Superior Method

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We have reviewed the four methods of investment appraisal techniques:

Payback Accounting rate of return Net Present Value Internal Rate of Return

The pros and cons of the payback,accounting rate of return and internal rate of return have been explained.

Fundamentally,the greatest disadvantage of the payback and [...]