Notes
Accounting 2020 ch 12
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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)
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- Note on Accounting 2020 ch 12, created by Angela Sitiriche on 27/04/2018.
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- Angela Sitiriche
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