GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Payout Method
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Pay back Method
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Accounting Method
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All of the above
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Detailed explanation-1: -The major methods of capital budgeting include discounted cash flow, payback, and throughput analyses.
Detailed explanation-2: -The correct answer is net present value. The preferred technique for evaluating most capital investments is net present value. It is a tool of Capital budgeting to analyze the profitability of a project or investment.
Detailed explanation-3: -Capital budgeting is the process by which investors determine the value of a potential investment project. The three most common approaches to project selection are payback period (PB), internal rate of return (IRR), and net present value (NPV).
Detailed explanation-4: -There are several capital budgeting analysis methods that can be used to determine the economic feasibility of a capital investment. They include the Payback Period, Discounted Payment Period, Net Present Value, Protability Index, Internal Rate of Return, and Modied Internal Rate of Return.
Detailed explanation-5: -Payback Period, Net Present Value Method, Internal Rate of Return, and Profitability Index are the methods to carry out capital budgeting.