Capital Budgeting: The method of evaluating long-term investment and taking decision regarding selection of the particular investment which seems profitable to the investor and add value to their investment. It includes evaluation related to the business opportunities and the deciding whether they are profitable or not. The capital budgeting helps decide cash flow of the project. Net Present Value : It is a one of the technique under capital budgeting which helps to decide whether the investment to made on the long term investment are profitable or not. It is difference of present value of cash incoming from the project and present value cash outgoing in project in particular time period. To determine: Net present value of project.

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Chapter 9, Problem 25P

Summary Introduction

Capital Budgeting: The method of evaluating long-term investment and taking decision regarding selection of the particular investment which seems profitable to the investor and add value to their investment. It includes evaluation related to the business opportunities and the deciding whether they are profitable or not. The capital budgeting helps decide cash flow of the project.

Net Present Value: It is a one of the technique under capital budgeting which helps to decide whether the investment to made on the long term investment are profitable or not. It is difference of present value of cash incoming from the project and present value cash outgoing in project in particular time period.

To determine:

Net present value of project.

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