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 [...]

Investment Appraisal Methods:Using The Profitability Index,Its Usefulness And Critique

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The profitability index is an alternative way of stating the net present value (NPV). It takes the present value of the cash-flows and divides them by the initial capital outlay. i.e.:Profitability Index (PI) =Present value of cash flows / Initial cash outflow

Interpretation:If the PI is [...]

Main Content Page For Articles On Investment Appraisal Methods/Techniques/Management

Investment Appraisal Techniques:-

1.0 Accounting Rate Of Return

2.0 Payback Period

3.0Criteria-of-a-good-investment-appraisal-technique

4.0 Time-value-and-present-value-of-money concept

5.0 Net present-value-NPV

6.0 Internal-rate-of-return-IRR

7.0 Advantages-and-disadvantages-of-internal-rate-of-return

8.0 Using-the-profitability-index-its-usefulness-and-critique

9.0 Net Present Value As The Most Superior Method