Formulas Capital Budgeting

Capital Budgeting

Or,

Here, A = The year in which the cumulative net cash flow is nearer to NCO. NCO = Net Cash Outlay. C = Cumulative Net Cash Flow of Year A. D = Net Cash Flow of the Year following the Year A.

Here, IRR = Internal Rate of Return A = Lower Discounting Rate B = Higher Discounting Rate C = Net Present Value at Lower Discount Rate D = Difference Between the NPV Value at Higher Discounting Rate & at Lower Discount Rate.

Created By,Mahmudul Hoque Chowdhury

ID # 503, Daffodil Institute of IT (DIIT)