Question
Below are the six models of a capital budgeting decision, which I guess are defined as a 'go or no-go' decision.From these which ones would
Below are the six models of a capital budgeting decision, which I guess are defined as a 'go or no-go' decision.From these which ones would be best for small projects and which ones for larger projects?Or all they all necessary for any capital budgeting decision? whats an example of how to calculate one of these models? Any help would greatly appreciated.
1.Payback period (standard)
2.Discounted payback period (modified from payback period)
3.Net present value (NPV) (standard)
4.Internal rate of return (IRR) (standard)
5.Modified internal rate of return (MIRR) (modified from IRR)
6.Profitability index (PI) (modified from NPV)
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