Explain the decision rulesthat is, under what conditions a project is acceptablefor each of the following capital budgeting methods a Net present value (NPV) b Internal rate of return (IRR) c Modified internal rate of return (MIRR) d Traditional payback (PB) e Discounted payback (DPB) ...

a NPV 0 if accepted the project will add value to the firm b IRR r t ...

Explain the decision rulesthat is, under what conditions a project is acceptablefor each of the following capital

Question:

Explain the decision rules—that is, under what conditions a project is acceptable—for each of the following methods:
a. (NPV)
b. (IRR)
c. Modified (MIRR)
d. Traditional payback (PB)
e. Discounted payback (DPB)

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...