For the professional manager, finance is the empirical discipline that translates operational activity into measurable economic outcomes. It is the language of value creation, resource allocation, and risk control.
Posts tagged as “Capital Budgeting”
Discounted Cash Flow (DCF) Analysis is a fundamental valuation method used in finance to estimate the intrinsic value of an investment, project, company, or asset.
The Capital Asset Pricing Model (CAPM), developed in the 1960s by William Sharpe, John Lintner, and Jan Mossin, provides a framework to evaluate the expected return of an investment relative to its risk.
The Modified Internal Rate of Return (MIRR) is a capital budgeting tool that addresses some of the significant limitations of the traditional Internal Rate of Return (IRR) method.
The profitability index (PI), also known as the profit investment ratio (PIR) or value investment ratio (VIR), is a capital budgeting tool used to evaluate the attractiveness of a project or investment.
Capital budgeting is the process companies use to evaluate and decide on potential investments or projects that require large capital expenditures.
Corporate finance is a crucial branch of finance that focuses on how corporations manage their financial resources to achieve their strategic goals, primarily maximizing shareholder wealth.
Financial management is the strategic planning, organizing, directing, and controlling of financial undertakings in an organization or institute.
Monte Carlo Simulation uses random sampling to model probability of different outcomes that cannot easily be predicted due to the intervention of random variables.
Capital budgeting, the process of evaluating and selecting long-term investments, is a cornerstone of strategic financial management.
Appraising investments is a part of the Capital Budgeting Cycle. Investment Appraisal helps to determine the best investment for a business.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.