Capital budgeting techniques

Exercise-1: Computation of simple and compound interest

Exercise-2: Computation of present value of a single sum

Exercise-3: Computation of present value of an annuity

Exercise-4: Net present value (NPV) method with uneven cash flows

Exercise-5: Present value index (PVI) for ranking investment proposals

Exercise-6: Net present value (NPV) with unequal proposal lives

Exercise-7: Payback period method in cost-cutting project

Exercise-8: Payback period with uneven cash flows

Exercise-9: Accounting rate of return (ARR) in a cost-cutting project

Exercise-10: Payback period method with salvage value

Exercise-11: Internal rate of return (IRR) method with even cash inflow

Exercise-12: Accounting or simple rate of return method with salvage value

Exercise-13: Accounting rate of return (ARR) with uneven cash flows

Exercise-14: Accounting rate of return (ARR) using average investment

Exercise-15: Comparison of two projects using net present value (NPV) method

Exercise-16: Net present value (NPV) analysis of two alternatives

Exercise-17: After-tax cash flows in net present value (NPV) analysis

Exercise-18: Tax savings from depreciation tax shield

Exercise-19: After-tax cost computation

Exercise-20: Payback and accounting rate of return method

Exercise-21: Net present value (NPV) method with income tax

Exercise-22: Net present value (NPV) computation with working capital

Exercise-23: Discounted payback period method

Exercise-24: Preference ranking of investment projects

Exercise-25: Internal rate of return (IRR) and net present value (NPV) methods

Exercise-26: Net present value (NPV) analysis with inflation

Exercise-27: Net present value (NPV) analysis – total and incremental cost approach