An internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. An internal rate of return is a discount rate that makes the net present value (NPV)…

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or…

Possibilities of Net Present Value (NPV) – Net present value is the difference between the present value of cash inflows and the present value of cash outflows that occur as a result of undertaking an…

The stock of beta coefficient, ‘β’ is a measure of the stock’s market risk. Beta measures the volatility of returns on a security relative to returns on the market, which is the portfolio of all…

The concept of Stock of Beta A stock of beta coefficient, ‘β’ is a measure of the stock’s market risk. Beta measures the volatility of returns on a security relative to returns on the market,…

The internal rate of return (IRR) is one of the most popular methods of evaluating potential projects. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value…

Capital Budgeting may be defined as the decision making the process by which a firm evaluates the purchase of major fixed assets including – building, machinery and equipment. It is a step by step process…

Working capital investment is the amount of money you require to expand your business, meet short-term business responsibilities and cover business expenses. Working capital investment and financing policy: There are three approaches which are used…

Working capital defines as current assets net working capital defined as current assets minus current liabilities. The management of working capital involves managing inventories, accounts receivable and payable, and cash. Working Capital Management: Working capital…

Capital Budgeting may be defined as the decision making the process by which a firm evaluates the purchase of major fixed assets including – building, machinery and equipment. It is a step by step process…

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or…

Capital budgeting is a step by step process that businesses use to determine the merits of an investment project. The decision of whether to accept or deny an investment project as part of a company’s…