Tags » Capital Budgeting


Capital budgeting is the process to identify, evaluate and implement investment decisions.
A company would seek investments that could improve their competitive advantage and increase shareholders’ wealth. 14 more words

What costs would be relevant when Amazon considers whether to operate its own cargo freight service?

Since its inception, Amazon has relied on third-party shippers, such as UPS and FedEx.  In 2013, Amazon experienced a wave of last-minute orders and bad weather left UPS and other shippers unable to deliver Amazon’s packages.  350 more words

Teaching Accounting

Money Today or Money Tomorrow, What's Better? - Intro to the Time-Value of Money

As I’m focusing on the concepts of corporate finance and finance in general this month, I wanted to start with one of the most basic yet powerful concepts there is when it comes to money and that is what’s called the… 399 more words

Corporate Finance

Why Multiple IRR?

For better understanding of the topic, we classify cashflows into two broad categories – Regular and Non-regular. Regular cashflows are those where the outflow is only once i.e. 562 more words


Capital Budgeting Techniques-Practical Exercise

Kisim Tasol Ltd wishes to analyze a proposed project using the NPV method. The outlay on the project is K480 000. The organization has forecast the year-end flows shown in the table below. 380 more words


Capital Budgeting- IRR done. Illustration 15 and 19 solved.

Financial Management