Notes
Accounting 2020 ch 12
Content of the notes (1)
Page 1
Capital budgeting is the process of making capital investment decisions.
Capital investments are made by companies, usually requiring large sums of capital, when they acquire capital assets- assets used for a long period of time.
Four common methods of analyzing potential capital investments:
Payback period
Accounting rate of return (ARR)
Net present value (NPV)
interest rate of return (IRR)
Information
- Description
- Note on Accounting 2020 ch 12, created by Angela Sitiriche on 27/04/2018.
- Created by
- Angela Sitiriche · Apr 2018
- Updated
- Apr 27, 2018
- Views
- 0
- Rating